Stock,
First off, I’m not a lawyer, although I’ve dealt with contracts most of my career.
There are actually three paths as I see it, all my conjecture, of course. The first is that the Lehman Phoenix rises from the ashes, and CTs are carried over in some form to the new bird.
Second, Pursuit of standing under the BK as CT’s should rightfully have received at least a share of their recovery, similar to the ECAPS. That could go either way as we know. If the first path comes true, this could fall by the wayside.
Third. A class action against BNYM for failing in their fiduciary duties to support the CT’s position in this BK. This is a separate action from the other two, and in my own humble opinion could still be pursued irrespective of the outcomes of either of the two paths above. It may or may not be muted by a positive outcome, and could perhaps be seen as a precedent in terms of ensuring that firms live up to the duties they assume (for a fee, of course).
Again, solely my opinion, but the Class Action I believe will be based on nonperformance, and so far that argument looks solid to me.
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