The CTs did not file bankruptcy, but they are a Lehman creditor. The only asset the CTs held was a junior subordinated bond (now a subordinated claim). The CTs as a creditor can only get distributions as outlined in the Modified plan for liquidation. Since the bond the Cts hold is junior to repayment, the more senior debt must be satisfied in payment first. The Cts are not the only ones. This from the disclosure statement;