Lehman Brothers Financial SA (LEHNQ)

[marayatano]

Read what I posted and then read what you posted.

Now the question: Where did I say the Cap trusts and sub notes are cancelled?

Your response makes no sense . . . or relevance nor does it dispute anything I have posted.

All you did was strengthen my position.

imo


I said:

The Godfather: I will keep my post brief and straight to the point because of time constraints. Anyone can chose to face reality or keep their "rose colored" glasses on.

Equity: preferrds and commons. Debtors keep them so they keep NOL carry forwards intact because all the major holder/institutions have already sold. Debtors canNOT have any major changes in ownership for at least 3 years or it will effect NOL carry forwards and reduce recovery for the creditors.

Cap trust/subordinate bonds (example: LEHNQ, LEHKQ, LEHLQ, CUSIP's etc.): Keep them intact. Why? So senior bonds can continue to enforce the subordination clause / make whole clause provisions. What does this do? Any distribution to cap/subordinate bonds are re-allocated to seniors bonds. Seniors bonds make (recover) more money than any other holding company creditor because they keep cap trusts/subordinate bonds intact. The reason why there is no ownership restriction on Cap Trust/subordinate bonds because it does not effect NOLs.

Using the combination of the above, yields a higher recovery for senior bonds because debtors are not paying any taxes (while enforcing the tax attributes on no ownership change re: NOLs) while they are liquidating Lehman and thus any taxes money not paid is then going to creditor.

Those of you know me, know I am straight shooter and tell it like it is.

In the end, I do not like to see people lose money and I want every one to make money.

People can choose to wait 5 to 10 years and be disappointed or face reality today.

Truth hurts, but I rather be the told the truth than lied to for many years... but that is just me.



imo

Your reply:

While you may be right that the CTS are considered to be Debt and not Equity and therefore do not preserve the NOLS, your statements are missing one very important fact:


1. If the Debtors cancel the CTS and other SUB NOTES in CLASSES 10A - 10C a trigger event of COD - Cancellation of Debt - will occur - which will reduce the NOLS by $ 15 B. There is a tax penalty for Canceling Debt - such as a reduction by the same $ amount in NOLS.


If the CTS/SUB NOTES are canceled/toast then so is $ 15 B in NOLS.



PG 126 - OF THE 2ND AMENDED DISCLOSURE STATEMENT -


" The IRC provides that a debtor in a bankruptcy case must reduce certain of its tax

attributes – such as current year NOLs, NOL carryforwards, tax credits, capital losses and tax

basis in assets – by the amount of any cancellation of debt (“COD”) incurred that arises by

reason of the discharge of the debtor’s indebtedness. Under applicable Treasury Regulations, the

reduction in certain tax attributes (such as NOL carryforwards) occurs under consolidated return

principles, as in the case of the Debtors who are members of the LBHI Group. "