Replies to post #50952 on Lehman Brothers Financial SA (LEHNQ)

[toogoodfella]

You're making me confused on what or who is the liquidating trust you are referring to. In fact, I only see two identities; the POR that is being run by the plan administrator, and the Plan Trust that is being run by the trustees. The plan trust represents the equity holders or one big share and therefore can act as the business owner with certain obligations to the creditors.

Assuming if the plan trust is no longer restricted by the POR's existence, the plan trust can then be free to make any business decision whether if decided to liquidate more or preserve all the remaining asset to start a new business.

With that said, the ownership of asset does not change, hierarchy rule of ownership must still be preserve. All of the remaining asset is still owned by the creditors as mentioned in the POR. Residual asset and NOL still owned by the equity holders.. All of this can be done by issuing new relevant stocks.

[toogoodfella]

3. The liquidating trust can not be an ongoing concern or it loses its IRS status.
+++++++++++++
The plan trust have certain limit of existence but not a big concern on two different scenarios.

I. Total liquidation will put everything out if existence and therefore no longer needed to continue.

2. If new business is established, the business itself will self govern and therefore the plan trust will be out of the picture and just expire.

Although, I will not expect the number one scenario because the NOL will not be put into use.

[stoxjock]

5. How does former equity (now in the trust) get out of the liquidating trust and become part of new LBHI?

They will be given new stock in the "NewCo LBHI" in exchange for their Escrow positions they carry in the OBS and that's how they become part of the new company.