Replies to post #78438 on Lehman Brothers Financial SA (LEHNQ)

[zulual]

“ the reduction of the
LBHI Tax Group’s NOLs as a result of the discharge
of debt pursuant to the Plan generally would not
occur until completion of the liquidation “

Does it mean that discharge of debt won’t reduce amount of NOL.?

If the remaining assets which debtors and remaining creditors decide not to liquidate, and if there is a company may merger with us to benefit mutually these 55B NOL, then a reorganized new company may comes out. TIA any opinions

[Muff77]

Upon
completion of the liquidation of the Debtors, all
remaining NOLs of the Debtors will be eliminated

Hi Ines,
Yes, that is right. But let me write my speculation - as I can not call it as DD. So ...

1) The creditors are not stupid people. They are waiting for their money and they prefer to get back MAXIMUM what they can expect.
That is why Creditors will wait untill all DEBTORS are able pay any penny and the last penny.

2) That is why we are waiting for the final setlement with Credit Suisse. It is the last economical entity what can bring some good money to the BK LBHI.

3) After that the creditors can wait for NOTHING. No more money can arrive. Or only a several dollars. At this moment JOE STOCK is right, the NOLS will be eliminated against the debts. But WHY creditors will wait for that ? At that case no more money could be generated !

4) More better would be at that moment to decide to change the plans and to use NOLs for future merger / business with another entity. Because only NOLs can generate another money. Without work. Imagine - BIG NOLs, 20 people staff, moveable to anywhere, financial backround ... But there are some conditions. 55 Bil of NOLs is a lot, so only big company can use them to underwrite that full amount in the next 10 Years, as the NOLS can be used with limitation to 2028 Yr.

5) So I expect the creditors will change their mind during next half of Year and will agresivelly establish new entity "LAMCO" to use the NOLS as the ONLY last possibility to get some recovery. And the owner of the NOLs is OBS and their sharholders / markers owners. And I suppose creditors work on it in silence under the line. And BTW I agree with Wayne, the Alvarez and Mareshall Co is not choosen from the air. There had to be a reason.

That is my speculation, if I am creditor, I would do that.
So the time will tell,
regards,
Martin