Lehman Brothers Financial SA (LEHNQ)

[irishintelligence]

I find this line of thinking questionable. Reallocation is on the table...6.4 is clear:

*"To give effect to agreements of holders of Subordinated Claims"
**to give effect = to make valid; to carry out in practice; to push to its results.


*"all Distributions under the Plan made by LBHI"
**"all distributions" = all distributions


*"the Subordinated Class 10A...(10B, 10C)...Distribution shall be automatically distributed to holders of Allowed Claims in LBHI Class...(various classes progressive)...until all such
Claims are satisfied in full"
**"satisfied in full" = negotiated POR settlement



Realistic possibilities?

1) a new indenture trustee, a bank holding company with less than $15B in assets, will emerge and pay our back dividends.
LEHMAN INCENTIVE: Claim sold for Cash
NEW BHC INCENTIVE: Fresh Tier I Capital
RESULT: We receive full value and back dividends

2) CTs are redeemed, proceeds reallocated to higher classes, we move to class 12
LEHMAN INCENTIVE: Claim resolved
RESULT: We wait for class 12

3) CTs back dividends are paid, proceeds reallocated to higher classes, POR is satisfied in full
LEHMAN INCENTIVE: Default resolved
LEHMAN INCENTIVE: Fresh Tier I Capital for new the new Lehman entity (less than $15B?)
RESULT: We receive full value and future dividend payments




We are certainly assured a spot in Class 12.