I see where you are getting at:
You: CT is hybrid of equity and debt. (In Bk and outside of Bk)
Me: Considered Debt. (BK only)
I agree that CT is hybrid equity/debt in its structure (OUTSIDE of BK).
Here is where we disagree:
On this board, it should only be in the context of bk, as nothing outside of BK should apply.
In bk, CT are considered debt, not equity.
In bk, when people refer to change in ownership re: 5%, they refer to holding company, not CT.
CT is a claimant in BK. There is never any mention of equity. CT filed as a creditor = debt, not equity.
If CT was considered equity, it would have filed another type of claim, other than debt, which they didn't.
As for LD, Lehman telling him CT are hybrid, I do not doubt that, however, you have to remember, when a person asks someone a question, the other person will just answer it. Each person does not know what context the other person is asking the question as to how it relates to them in their mind.
If LD posed the question to the Lehman girl as it relates to bk, if she was authorized to (and if she was from the legal dept), she would have told it him that hybrid factor has no consequence in bk.
By LD just asking if Cts are hybrids, then you get a straight answer.
In my mind, everything I speak about is in the context of BK, because that is the only thing that applies since that is where, in this case, Lehman is.
Can't type anymore, I have to get back to work.
imo
