Lehman Brothers Financial SA (LEHNQ)

[stockmojo9]

The fact claims have been paid almost $50B as agreed in the POR is compliance and good for the process.

It seems these payments would initially go toward principle payments and not interest, which is good, and could be a part of other settlements.

The Lehman estate is also receiving NOL tax credits upwards of $5B per year and this is also good.

The brokerage sale is done and other settlements are forthcoming.

The issue then comes to is there a Lehman entity that can exit BK and do well on the market and what is the structure of that entity?

Many think there is an entity that would succeed.

But, the debt structure isn't clear partly because we don't know the remaining Senior debt payments going forward and other debt agreements.

The CT & Preferred face value total $9.7B and $11B, with the UK Preferred, but they may be contained in LBHI.

To bring them all current would require some $2.7B + interest or less if the convertibles were adjused in a new common offering.

The court and estate executors were very correct to seperate the CTs from the other issues to capture NOLs as the company emerges from BK.

The lawyers and bankers can always be accumulating any shares on the market up to 5% of outstanding shares without announcing anything.

So, the question becomes, "Why does the price action remain so crappy for the CTs?"