Replies to post #84284 on Lehman Brothers Financial SA (LEHNQ)

[camaro4me]

Another darn fine summary and opinion.

I do not dismiss arguments without reason, even from those with an opposing view and even if I think they may have an 'agenda' behind them... I was also having the same question as you, that ECAPS were issued by LB UK... BUT, when I re-read LBHI's CT prospectuses, I found that it is an 'all-encompassing' "Global Guarantee" and doesn't make any distinction as to 'which subsidiary' the 'other' "Preferred Securities' may belong to. IF LBHI did not have such a Guarantee, they would not ave been able to sell such large # of CTs, to a 'truly Global' Investment Community that bought the CTs...I think this is also the reason that RSM Advisory went after LBHI and NOT just LBIE... IF what you claim is true, RSM Advisory, being that they are well-versed with all the 'Legal interpretations' of their ECAPS Propsectuses, would in fact have 'no grounds what-so-ever' to engage in any Legal motions with LBHI...

IMO, Cotton and Rex Wu studied all these Dockets from all these Legal Angles and filed their objections...

I am also really 'amused' by the 'Alacrity' with which the Plan Administrator filed for a 'Special Distribution' to Creditors, WITH a RECORD DATE of JUNE 17th, 2 Days BEFORE the Hearing on Mr.Rex Wu's Motion... It is Really A Very Suspicious Move... The Whole intent of the Plan Administrator's move seems to be to "Grab Whatever Assets He can" and "Disburse them off to the Creditors" to 'pre-empt' a "Court Order Finding on June 19th, in Favor of Mr Rex wu's Objection Motion".

This is nothing but "Thievery" and I am hoping Mr. Wu & Mr. Cotton (Mr. Gregory) object to it and I also hope that Regardless of whether someone objects or not, the Court will Take "An Investigative Review" of this 'Brazen Attempt' to Steal Assets from CTs and other Equity, when an important Hearing is pending in front of it, on this very matter...

[Joe Stocks]

Stoxjock, I don't think you fully understand what is going on with the ECAPs. I would suggest studying this document;
https://www.rns-pdf.londonstockexchange.com/rns/8119H_1-2018-11-19.pdf

and then docket#58884, the judge's response and order to the matter in the US Bk Court. BTW, the judge ruled against the issuance of substitute preferred shares by LBHI. The funds LBHI was holding as to the ECAPs have been transferred to the UK liquidator. All this is noted in the docs above. Obviously RSM Advisory was representing ECAP holders in Europe, and yes they DID have grounds to stop LBHI efforts to issue substitute preferred shares. Again, read the document link above from RSM Advisory as a joint liquidator. This is not my opinion. Read the docs!

The ECAPs are very different from the CTs. The ECAPs have both the UK unit, LBH, and LBHI guarantees. The CTs only have the LBHI guarantee. Much is made of this "global guarantee". Yes, there is a guarantee, but it is a guarantee subject the ranking as well with the CTs being subordinated debt, and junior to senior debt.

Stoxjock, You think you are on to something here. I will ask you. Why doesn't the market agree with you. If there was any chance at all to a recovery investors would be will to pay much more than 10 cents a share just to have a "option" of a possible payout?

There is no thievery. Shareholders here simply do not understand the process and don't fully understand what they own and its limitations.

Answer one question for me. Do you know why LBHI wanted to issue substitute preferred shares? If so, let's hear it. Your answer will be very telling if you really know what is going on with the ECAPs.

I am not the enemy of you CT holders. You all's insufficient knowledge of the process is. The CTs have no pathway of seeing a recovery. They are worth zero in the end. Wu's motion will go nowhere.