Lehman Brothers Holdings Inc. (fka LEHMQ)

[Jimzin]

Greetings Hestheman and thank you for the additional insight. I will review your prior posts and read more about the Mirant BK Chapter 11 to get educated even more.

I only own LEHMQ commons so tell me if you know the BK rules on this...It would appear to me that LEH is benefiting tremendously by NOT cancelling the common shares (+/- $50B). I understand that LEH preferred shares are a higher priority and they should be paid out at face value before commons. But if you have a $50B NOL and LEH merges with company X for say half the value of the NOL's, then LEH preferred shares can easily get paid in full and the remainder should go to commons. I believe I read in other posts that LEH preferred shares are worth +/- $2B at face value.

Wouldn't you agree that commons would be getting shafted otherwise? It could be argued that common share holders are holding the company together...without us there would be no NOL.
commons shares = (689M @ .03), or say $20M value.

If the value of the new company is say $20B (not unlikely), would it not be correct in assuming that common shares would be valued at 1000 times current $.03? or am I just dreaming and doing bad drugs?
I'm not following how a company can come out of BK with common shares intact and then indiscriminately value those shares at anything less that the value of the new company - when it was common shares that allowed them to take advantage of the NOL in the first place. what am I missing here?

Cheers and GLTA!