Replies to post #70589 on Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

Subordinated indenture is the key! Read the articles in the subordinated indenture(s)!

"Upon any voluntary or involuntary liquidation or bankruptcy of Holdings, the property trustee, as holder of the subordinated debentures, would be a subordinated creditor of Holdings, subordinated in right of payment to all senior debt as set forth in the subordinated indenture, but entitled to receive payment in full of principal and interest before any stockholders of Holdings receive payments or distributions."

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Why put line item 6 into the clarification letter? Someone was telling Barclays to assume the sub-debt! Barclays wanted to pour concrete on this topic and not assume the sub-debt!

The prospectus spelled out the rights of subordinated debt for LBI and LBHI. Look at the sub-debt indentures for LBI and LBHI, articles 10 and 8, respectively! The indentures spell out how sub-debt follows the transfer of holdings assets. Barclays is not stupid about cure cost. Kelly was on target about cure cost!

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LBHI Docket 280 - Clarification Letter

Quote:
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BARCLAYS CAPITAL INC.

As of September 20, 2008

.
.
.

6. Subordinated Notes of LBI. The outstanding subordinated notes of LBI are not Assumed Liabilities, and such subordinated notes and any Liabilities associated with such subordinated notes therefore are Excluded Liabilities.


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*** Old Post ***

"Now, LBHI is filing actions against these alleged successors based on asset sale agreements."

$$$

"Retiring Lehman Judge Approves Fannie Settlement | Better Markets
https://www.bettermarkets.com/.../retiring-lehman-judge-approves-fannie-settlement - Cached
30 Jan 2014 ... "NEW YORK—Judge James Peck approved Lehman Brothers Holdings Inc.'s
settlement with Fannie Mae over $18.9 billion in mortgage claims ..."

***

"mis·take/m?'stak/
noun
an action or judgment that is misguided or wrong.

verb
be wrong about."




*** LBHI's TRuPS *** $2 billion mistake???

" 9.1. Successors and Assigns.

All guarantees and agreements contained in this Guarantee shall bind the successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of the Holders of the Securities then outstanding."

https://www.sec.gov/Archives/edgar/data/806085/000104746903008869/a2105775zex-4_05.htm

*** Progress *** $18.9 billion in mortgage claims settlement

"This action is related to claims LBHI has been making in demands to loan originators over the past year. LBHI has taken the position that loan originators that purchased certain assets of other loan originators that originated the loans that were the subject of the Fannie Mae settlement are also responsible for liabilities of those loan originators. It has convinced the bankruptcy court to force these alleged successor companies into the Alternative Dispute Resolution procedure it has in place which requires loan originators to mediate with LBHI in New York. Now, LBHI is filing actions against these alleged successors based on asset sale agreements."

http://www.mortgagenewsdaily.com/channels/pipelinepress/12222016-lehman-brothers.aspx

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"Lehman Brothers
Investment company
Lehman Brothers Holdings Inc. /'li?m?n/ was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States, doing business ... Wikipedia
Ceased operations: 2008
Founder: Henry Lehman
Founded: 1850, Montgomery, Alabama, United States
Headquarters: New York City, New York, United States
Parent organization: Lehman (Cayman Islands) Ltd
Successors: Nomura Holdings, Barclays, L-3 Communications"

http://www.google.ca/search?hl=en-CA&source=hp&biw=&bih=&q=lehman+brothers&gbv=1

*** Old Post ***

A breach is a breach!

breach/breCH/
noun
an act of breaking or failing to observe a law, agreement, or code of conduct.
a gap in a wall, barrier, or defense, especially one made by an attacking army.

verb
make a gap in and break through (a wall, barrier, or defense).
(of a whale) rise and break through the surface of the water.





*** LBHI Docket 280 ***

Quote:
--------------------------------------------------------------------------------
ASSET PURCHASE AGREEMENT
AMONG
LEHMAN BROTHERS HOLDINGS INC.
LB 745 LLC
AND
BARCLAYS CAPITAL INC.

Dated as of September 16, 2008

.
.
.
.

2.4 Excluded Liabilities

(a)

(b)

(c)

(d)

(e) all Liabilities relating to amounts required to be paid by Seller, hereunder, including upon any breach;

(f)

(g)

page 12 of 42
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***

LBHI Docket 280 - Clarification Letter

Quote:
--------------------------------------------------------------------------------

BARCLAYS CAPITAL INC.

As of September 20, 2008

.
.
.

6. Subordinated Notes of LBI. The outstanding subordinated notes of LBI are not Assumed Liabilities, and such subordinated notes and any Liabilities associated with such subordinated notes therefore are Excluded Liabilities.


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[s404n1tn0cc]

How low can you go. Very low. .0001 Sub penny IMO


From the same docs
See https://www.sec.gov/Archives/edgar/data/806085/000104746904010912/a2132819z424b2.htm

Lehman Brothers Holdings is not required to pay you under the guarantee if the trust does not have cash available.

If Lehman Brothers Holdings defaults on its obligations to make payments on the junior subordinated debt securities, the trust will not have sufficient funds to make payments on the preferred securities. In those circumstances, you will not be able to rely upon the guarantee for payment of these amounts."