Replies to post #80393 on Lehman Brothers Financial SA (LEHNQ)

[goodietime]

"Note: Fresh start accounting requires the Lehman Brothers Reorganized Debtors to be insolvent on September 15, 2008 and old equity must own less than 50% of Successors new equity."

?? " and old equity must own less than 50% of Successors new equity."??

I believe in WAMU's case 'old equity' needed to KEEP MORE THAN 50%.

[JERSEYHAWG]

Holy smokes.

Look what the cat dragged in. Whats up cotton? Laying low reading in the shadows I guess. Good to see you post.

[wayne49]

My peoples calculated about 160 billion in NOLs. LD uses the term 50+billion. POR states there will be a discharge which will be accounted for as an extraordinary adjustment on the last income statement after discharge before closeout along with the Plan of Reorg adjustment to come up with the present value of the assets(NOLs and remaining il liquid assets).

How did you get the 570 billion? Thanks

[cottonisking]

#2 Lehman Brothers $200 billion in NOLS under Chapter 11 Fresh Start Accounting:

http://www.mondaq.com/unitedstates/x/83990/After+The+Bankruptcy+Fresh+Start+Accounting

*****

Lehman Brothers historical asset value = $620 Billion

Lehman Brothers liabilities subject to compromise = $250 Billion

Lehman Brothers Successor Fresh Start asset value = $168 Billion as of March 6, 2012.

*****

Math:

$620 B - $452 B Fresh start valuation adjustment = $168 B Lehman Brothers Successor Fresh Start asset value as of March 6, 2012

$452 B - ($250 B Gain on Settlement on liabilities subject to compromise + $2 Professional Fees) = $200 B NOLS

Note: Fresh start accounting requires the Lehman Brothers Reorganized Debtors to be insolvent on September 15, 2008 and old equity must own less than 50% of Successors new voting shares. Lehman Brothers has been selling off $168 B in assets since March 6, 2012 to pay down debt...

[toogoodfella]

Wow!! Cotton is better than the real Balance sheet!!!