Replies to post #85925 on Lehman Brothers Financial SA (LEHNQ)

[JERSEYHAWG]

BOOM !


LOL

[Joe Stocks]

>>the claims consolidation offers creditors the chance to cash out (benefiting them)<<

You are misconstruing what is benefiting creditors and taking out of context. Just because a creditor is selling his claim to another creditors just to be done with the mess is not benefiting creditors as a whole.

You are speaking of only creditors who CHOOSE to sell their claims to the winning bidder (sponsor). LBHI is the facilitator, or auctioneer. Just because the claims are being consolidated, that does not mean they are being reduced.They are simply now held by someone else. LBHI bought claims right after exiting BK from small holders of $50,000 or less of face value. That is only time they did as approved by the court. They paid 26% on the dollar, which ended up laeving more money for the remaining creditors. The creditor committee approved that buy to reduce the number of claimants that they would have to deal with for distributions. Those claims bought as referred to as convenience claims in the disclosure statement.

Again, obviously you are confused about the process. LBHI is facilitating an auction and will be soliciting bids from parties wishing to purchase Eligible Claims against LBHI. The "sponsor" will be the winning bidder. No capital will be flowing to LBHI. LBHI has no funds to buy the claims themselves. The sponsor is buying claims against the estate of LBHI. That sponsor as the new owner of the claims, will receive distributions from the liquidation of remaining assets.

Read everything you can here plus the FAQ's. They explain the claims consolidation auction very well. Don't try to read stuff in to it that is not there. The process is very straight forward.
https://dm.epiq11.com/case/LBH/info