Replies to post #82780 on Lehman Brothers Financial SA (LEHNQ)

[JERSEYHAWG]

Swiss, there was a very good post on the other board re why. I suggest you visit and study on it. It might quench your thoughts on
the why angle.

[Joe Stocks]

Let's say you have a claim for a $1000. It is estimated that the estate only has funds to pay you 40% or $400. You don't want to wait 6 years to get that $400 so you offer to sell you claim for $300. That leaves the estate with an additional $100 for distributions to other creditors.

If that doesn't make sense to you, then it isn't that it doesn't make sense, it is that you don't want it to make sense.

This is the same as the "convenience claims". I held a class 3 senior unsecured bond. Actually 3 them in three separate accounts for $50,000. LBHI offered those with class 3 claims of $50,000 or less the opportunity to sell those claims back to the estate for 26 cents on the dollar at the emergence from BK. I took that deal knowing that it would be years to see all distributions. Once those claims were bought back they were cancelled. If you accepted the deal you became a class 6a claimant.

It is all in the disclosure statement.

LBHI Class 6A- Convenience Claims against LBHI

Convenience Claims against LBHI include any Senior Unsecured Claim or General Unsecured Claim against LBHI, other than a Claim based on a public debt security issued by LBHI or a Claim of a Designated Entity, that is (a) Allowed in an amount of fifty thousand dollars ($50,000) or less or (b) Allowed in an amount greater than fifty thousand dollars ($50,000) but which is reduced to fifty thousand dollars ($50,000) (i) by an irrevocable written election by the holder of such Allowed Claim made on a properly delivered Ballot or (ii) pursuant to a settlement agreement between LBHI and the holder of such Claim entered into after the Voting Deadline; provided, however, that any such Claim against LBHI that was Allowed in excess of fifty thousand dollars ($50,000) may not be subdivided into multiple General Unsecured Claims of fifty thousand dollars ($50,000) or less for purposes of receiving treatment as a Convenience Claim.

Each holder of an Allowed Claim in LBHI Class 6A shall receive Cash in an amount equal to 0.26 multiplied by the amount of such Claim, in full and complete satisfaction of such Allowed Claim on the later of the Effective Date and the date such Claim becomes an Allowed Claim, or as soon thereafter as is practicable. Claims in LBHI Class 6A are impaired by the Plan and are entitled to vote to accept or reject the Plan.

https://www.sec.gov/Archives/edgar/data/806085/000119312511239866/dex991.htm