Hey Joe, been away from the lehnq board awhile. Just caught up on the postings, lol. I see they are still at it. Hey what happened to that magical Oct 3/4 day? They are funny. I really do enjoy your postings. Its like the U.S military vs the Boy Scouts. I see some of them keep stating that these CTs will be reaffirmed, or a new company will a merge from bankruptcy. Since I don't have interest in arguing with people who see and read only what they want to see and read. I have a couple of questions if you want to ask them. Why would Lehman reaffirm these Cts? Wasn't the purpose of issuing Trusts to raise capital for the company? So what kind of value does these trusts have for Lehman? If Lehman does become a new entity how does the new entity have any responsibility to old Lehman debt? Isn't that the purpose of bankruptcy, to release debtors from debt? Oh by the way here is a part of the prospectus on Lehn trust and they are the same through all trusts that some say about the guarantee is unconditional , page s4:
How are the preferred securities guaranteed?
Holdings will fully and unconditionally guarantee, to the extent set forth in the accompanying prospectus on page 21:
•amounts due on preferred securities to the extent the trust has funds available for payment of such distributions (the "guarantee"); and
•its obligations under the declaration of trust and the subordinated indenture (the document governing the subordinated debentures).
The guarantee does not cover payments when the trust does not have sufficient funds to make payments on the preferred securities. In other words, if Holdings does not make a payment on the subordinated debentures, the trust will not have sufficient funds to make payments on the preferred securities, and the guarantee will not obligate Holdings to make those payments on the trust's behalf. In addition, Holdings' obligations under the guarantee are subordinate to its obligations under all of its other liabilities
But I 'm sure you knew this already. Thumbs up to you Joe, wish you the best. I check in time to time.
AI
