Replies to post #46363 on Lehman Brothers Financial SA (LEHNQ)

[goldstandard]

It's all interpretation, but words matter imo .

Under the new Lehman plan, holders of unsecured debt from the parent company would receive 21.1 cents on the dollar, down from 21.4 cents under the January plan. Other unsecured creditors would get 19.9 cents on the dollar.

Creditors such as Paulson earlier sought roughly 24 cents on the dollar.

Many unsecured creditors of the Lehman Brothers Special Financing Inc derivatives unit would receive 27.9 cents on the dollar. These creditors include large banks that had been Lehman trading partners, as well as hedge funds.

Holders of commercial paper, a type of short-term debt, could recover 48.4 cents or 55.7 cents on the dollar.

Lehman has said creditors have roughly $322 billion of allowed claims, meaning they would on average recover about 20 cents on the dollar.

Allowed claims 322bil. Pro rata clauses after Allowed claims satisfied in full.

[toogoodfella]

Allowed Claims are legitimate claims, but this is a BANKRUPTCY
+++++++++++++++++++

Let's make some analyses in this Robigus, I have to agree that this is possible but let us analyze the consequences.

It is possible to LBHI to stop payment before all of the asset is gone by cancellation of the remaining debt.

This cancellation will be the remanning claim which is going to be larger than the deficit.

Then, there will be a COD obligation that will be larger than the NOL plus the remaining asset.

Thus, will result to nothing left. A negative balance to the IRS.

I bet you will not choose that path.