Lehman Brothers Financial SA (LEHNQ)

[marayatano]

the ownership in lehman is the same because there is a no change of ownership in effect. You can't take advantage re-allocation from lower creditors to higher creditor or tax attributes until you are done liquidating.



In other BKs, provided there is a viable business, a new entity emerges with new shares trading owned by debt holder, old equity or a combination thereof. These holders can see the new securities in their stock accounts. They can buy more, sell or trade on the pink/otcbb/NYSE/NAsdaq, etc. These new holders are also getting interst/dividends, etc. depending on what security type they have.

Lehman:

In Lehman, same holders, same entity, same debt, same everything = liquidation. The holders see the same security with the same "Q" at the end of their security trading in the greys (or their shares are lock up). Lehman = no divies, no interst payments, just recovery payments.

There is a big difference here.



imo