Lehman Brothers Financial SA (LEHNQ)

[jwnoble3]

Cotton,

I posted this awhile ago. Do you understand what amount the pro rata language in the POR represents?

Reading over the POR for the 10th or greater time -

On pg 81 (it looks like our re-distro to higher classes were capped at what our pro rata share would have been). Wasn't the orig pro rata amount ~7% of FV for class 10A,B,C? I could be reading this incorrectly or have the amt (~7%) wrong. Or is it the full amount of these classes ~15B?

Heres the specific section(s)-

6.4 Redistribution of Subordinated Claims Recoveries. To give effect to agreements of holders of Subordinated Claims, all Distributions under the Plan made by LBHI shall be
calculated as if each holder of an Allowed Claim in LBHI Class 10A, LBHI Class 10B and LBHI Class 10C were to receive its Pro Rata Share of Available Cash from LBHI, and, in the case of
each holder of an Allowed Claim in LBHI Class 10A and LBHI Class 10B, its Pro Rata Share of the Subordinated Class 10C Distribution; provided, however, that:

Section 4.3 LBHI Class 3 – Senior Unsecured Claims against LBHI.
(a) Impairment and Voting. LBHI Class 3 is impaired by the Plan. Each holder of an Allowed Claim in LBHI Class 3 is entitled to vote to accept or reject the Plan.
(b) Distributions. Each holder of an Allowed Claim in LBHI Class 3 shall receive its Pro Rata Share of (i) Available Cash from LBHI, (ii) Subordinated Class 10A
Distribution, (iii) Subordinated Class 10B Distribution, (iv) Subordinated Class 10C Distribution
and (v) the Plan Adjustment.