Lehman Brothers Financial SA (LEHNQ)

[stockmojo9]

Math Chat

Statistical Approach to Escrow Share Restructure:

Root of 689 is 13.

13 x 53M = 689M Old Shares outstanding.

IPO price $20. $20/13 = $1.54/old common share

$25 Nominal Preferred = 1.25 new common or 103,168,000 new common
$50 Nominal Preferred = 2.5 new common or 22,500,000 new common
$1000 Nominal Convertible Preferred = 50 new common or 300,000,000 new common
Post Split Old Common = 53,000,000
New Common Share Total = 478,668,000
Market Cap @ $20 = $9,573,360,000
Capital Trusts Float = $1,200,000,000

Total - $10,773,360,000

Is it a problem this proposal creates no cash for a new Lehman entity?

And, what is the debt total that remains against all other assets?

Last, why wouldn’t the market take this new structure down to $.50 where Lehman post-BK is a penny stock?