I just read through the prospectus
What page was the mandatory default event defined please? This is critical because I'm under the impression now that as long as the underlying subordinated debentures (10B?) that were placed into the preferred trusts are in default, which I believe they are, and LBHI has no available monies to pay, which is apparently what LBHI has been claiming, capital trusts should not expect any payments and the interest deferrals can go on until 2054...
If the prospectus is in effect, we'll need to have one of the following happen to get payment:
1. Some payment needs to be made to class 10B in which case CTS will get their share
2. Enforcement of this "mandatory default event" (kindly reference page number in prospectus) that violates executory contract as you've stated. I'm still fuzy about this one...
* I personally don't see the need for LBHI to make full or partial redemptions on CTS or even interest payments (just keep deferring as long as 10B is entirely in default and there's "no cash available" per POR)
** this October 2 distribution is a vital moment of truth for CTS...if certain class 3-9 claims keep extending their recoveries when they should have been paid and/or satisfied in full without class 10B receiving a single penny, there a lot more waiting around for an eventual fruitless ending imo.. Important to monitor the recovery amounts by class, from last distribution to this upcoming one...
*** Also, if the stay is lifted, if there are no legal actions taken by the trustee to have LBHI perform the so-called executory contract that was triggered by mandatory default event, this doesn't look good especially if class 10 continues fall short of getting any love.
For those of you that have not done so...I recommend that you read the prospectus (link at the top of the LEHNQ board which you may have "hidden" to avoid it popping up each time the overview of post is loaded)
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