Lehman Brothers Financial SA (LEHNQ)

[marayatano]

marayatano: good stuff but can i rewrite your post. Just a few corrections and you let me know what you think...


the ownership in lehman is the same because there is a no change of ownership in effect. Creditors are taking advantage of re-allocation from lower creditors to higher creditor or tax attributes until you are done liquidating or the debt is discharged.



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 = a way to re-organization. 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 until there is a discharge and the bankruptcy is completely closed out after paying the default amount agreed upon in the POR.


There is a big difference here.

imo



You bet. Words are key and have meanings....go figure...devil

I believe you changed the BOLD portion.

IMO, this is where a lot of the board converges in different directions after the $65 billion is attained. I agree, "close out", but it may have a different meaning to everyone.

Some say:

$65 bil is the "settlement".
New shares to everyone after the $65 billion is paid.
Re-instate divies.
I don't remember the rest.

... and then there is mine (the most unpopular): The end after liquidation. Any illiquid/unliquidated property/entity/subs is shares given to senior crediotrs. Any deficiency by seniors is discharged along with everyone below... POR is in effect completed.

Of course, everyone is entitled to their opinion.


Well, I really have to get back to work now. Laters

imo