Replies to post #81097 on Lehman Brothers Financial SA (LEHNQ)

[Docsavag]

Pretty significant impact here, I would think. Certainly helps.

[Argus63]

Sounds good in our case.

GLTA

[cottonisking]

#3 LBHI's $224 billion in NOLS under Chapter 11 Fresh Start Accounting:

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

***** Investors's Estimate

Lehman Brothers historical asset value = $640 Billion

Lehman Brothers liabilities subject to compromise = $250 Billion

Lehman Brothers Successor Fresh Start asset value = $168 Billion as of March 6, 2012 [LBHI's Effective Date].

*****

Math:

$640 B - $472 B Fresh start valuation adjustment = $168 B Lehman Brothers Successor Fresh Start asset value as of March 6, 2012

(($472 B - + $2 Professional Fees) - $250 B Gain on Settlement of liabilities subject to compromise) = $224 B NOLS

Note: Fresh start accounting requires the Lehman Brothers Reorganized Debtors to be insolvent on December 6, 2011 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/allowed claims...

Note: No one could agree on LBHI's asset value on September 15, 2008. Expect the Debtors to make use of the remaining four distribution dates out to October 1, 2020. Why? No creditor will be able to cry over their gift to equity!