Lehman Brothers Financial SA (LEHNQ)

[stockmojo9]

13 x 53M = 689M Old Shares outstanding or 1 new share for 13 old common split
IPO price $20. $20/13 = $1.54/old common share
Capital Trusts Payout = Let float at 100% of Nominal & Coupon Payout of $74,730,000 yearly until called & $336,285,000+ cumulative payment
$25 Nominal Preferred = Convert to 51.584M New Common at 1 new for 5/4 x 1/2 or 5/8's old nominal only (no cumulative payout)
$50 Nominal Preferred = Convert to 11.250M New Common at 1 new common for 5/2 x 1/2 or 5/4's of old nominal only (no cumulative payout)
$1000 Nominal Convertible Preferred = Convert to 150M new common shares at a rate of 25 new for 1 old nominal only (no cumulative payout)
Settled New Common Shares = 212,834,000
IPO Common Shares Total = 530,000,000
Market Cap @ $20 = $10,600,000,000
Net IPO Proceeds less: Required New Common Settlement = 317.166M x $20 = $6.34332B
Price after Road Show & Prospectus = $25
Net Prospective IPO Revs Total = $7.92915B less fees

This low valuation of common & preferreds suggests 2 things:

1. There is little to no need for a new "partner" or buyer.
2. The creditors can be brought to a reasonable level of satisfaction if they continue with the company or they can sell for less.

There is little reason for further destruction of creditor interests and debtors roles can be resolved with more business or creditor positions if they'll accept them.

Let the markets work.