Replies to post #51027 on Lehman Brothers Financial SA (LEHNQ)

[zulual]

Indeed, in order to have a reorganized new business, enough cash is the king. Unless there are new investors adding more cash. Like FMARQ, bank holding company got 100M. Even company changed name to Capital Trust Holdings, Inc.
But I have no ideal that old equity and creditors involved in the new company, any NOL for old equity.

[stockmojo9]

toogood,

I'd agree unless LBHI & JPM think of letting Barclays, Nomura or Neuberger Berman make the most of them and assume the liability.

Obviously, it would give LBHI & JPM less liability to worry about and more capital to allocate elsewhere.

If LBHI or JPM keep the TRuPS, they can bring them current so inexpensively, the only reason they wouldn't would be that they could cancel them without the liability through the Courts.

And, if LBHI are giving up on the TRuPS, what else are they giving up on during this bankruptcy and POR?

mojo

[rlinterests]

The involuntary chapter 7 may force LEHMAN to liquidate the remaining asset to accelerate the Trups. This may cause a bad effect to the preferred and common if there is a need to capitalize a new business.

Yeah. So what?

Why should CT's care? I just want the money owned CT's.

How about this, a transfer of monies(cash) owed to CT's to preferred and common in exchange for "new stock", will benefit preferred and common, reduce-not eliminate- the need for dilution in the future.

But, I fail to see the benefit to us, CT's.