Replies to post #72873 on Lehman Brothers Financial SA (LEHNQ)

[linda1]

Thanks very much.

I had forgotten about the 1 New Share in the
Plan Trust.

There appears to be a contradiction by LBHI. In
the Motion to extend the Term of the Plan Trust,
LBHI seems to be saying that it will only be utilizing
the NOLS - Tax Attributes - until LBHI 's Chapter 11
case is closed.

On the one hand it states - on Page 8 in the following
link -:

" It is not currently anticipated that any former
stockholder of LBHI will receive any distributions
as a result of its beneficial interests in the Plan Trust.

13. Unless otherwise determined by the Plan
Administrator, on the date that LBHI’s chapter 11 case
is closed in accordance with Section 6.6 of the Plan, the
New Common Stock will be deemed cancelled and
of no further force and effect. Plan at § 4.17(c). "


http://document.epiq11.com/document/getdocumentbycode/?docId=3102843&projectCode=LBH


And on the other hand it states in the above link
- on Page 5 - the Plan Trust's purpose:

" It also preserves important tax attributes of the
Chapter 11 Estates that ultimately benefit creditors,
fulfills certain securities laws obligations, and benefits
former stockholders of LBHI. ".

Just how much of the NOLS has LBHI been able to
utilize since it emerged from bankruptcy?

[cottonisking]

$35 billion years ago or dollars ago? LOL


"The creditors' concerns were the main reason for shelving the plan, Marsal told Reuters.

"From their standpoint, there was a real concern that we would become unfocused and instead of focusing on their $35 billion in assets, we would focus on new assets," Marsal said. "For them, there wasn't enough juice in the deal to warrant that distraction.""

http://www.reuters.com/article/us-lehman-idUSTRE77G5FB20110817

Lassie, go and bring me my pink shoes off the center shelf. Good girl Lassie, now go and find LAMCO in the forest that is on fire. Lassie, I put over $100 billion ounces of juice in your pouch to keep you cool from the hot fire.

***

"fulfills certain securities laws obligations"

*** Docket 54616 ***

"1. Pursuant to the Plan, all of the common and preferred stock of LBHI was
cancelled and one new share of LBHI common stock was issued (the “New Common Stock”). A
Plan Trust was created to hold the New Common Stock.
2. The Plan Trust is a unique mechanism that was designed to assure the
execution of the Plan. It was the product of lengthy negotiations and compromises among
different parties in interest concerning the Chapter 11 Estates’ post-Effective Date governance.
It elects and oversees LBHI’s Board of Directors. It will receive and distribute any proceeds
with respect to the New Common Stock. It also preserves important tax attributes of the Chapter
11 Estates that ultimately benefit creditors, fulfills certain securities laws obligations, and
benefits former stockholders of LBHI. As such, the Plan Trust, and management thereof, is an
integral component of the Plan and the administration of the Chapter 11 Estates."
.
.
.

"27. No parties in interest will be prejudiced by an extension of the term of the
Plan Trust. On the other hand, if the term of the Plan Trust is not extended, the Plan Trust will
terminate, leaving open and unanswered questions regarding the management of the New
Common Stock (and potential distributions for the benefit of former stockholders) and the
process concerning the selection of LBHI’s Board of Directors. The Chapter 11 Estates would
be at risk of, among other things, losing valuable tax attributes, failing to comply with applicable securities laws, and upending the corporate governance process that has been successful to date
and was instrumental in confirming and effectuating of the Plan.