Replies to post #89319 on Lehman Brothers Financial SA (LEHNQ)

[SwissCheeseAccount]

It's too my understanding LBHI gave funds to pay the ecaps at one point.

[SwissCheeseAccount]

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The ECAPs are on parity with the traditional preferreds in the LBHI estate.

and ecaps have a right to preferred equity in LBHI. ecaps 4and 5 are guaranteed by LBHI. ECAPS 4 & 5 prospectus states they were supposed to receive preferred stock in LBHI but lehman did not honor their prospectus. therefore ecaps 4 and 5 by law have to be included in stock distributions. ecaps have parity with traditional preferreds and the most senior preferred of the lBHI estate is the CT's. this would lump all of them together.


https://www.sec.gov/Archives/edgar/data/806085/000119312511339839/d267202dex101.htm