Replies to post #95443 on Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

>> If the guarantee trustee fails to enforce the guarantee trustee's rights under the guarantee, any holder of related preferred securities may directly sue Lehman Brothers Holdings to enforce the guarantee trustee's rights under the guarantee without first suing the trust, the guarantee trustee or any other person or entity.<<

In this court case, the judge may ask you why you did not sue within a timely manner. Within the statues. Obviously the Cts were not getting dividends from 2008. Lehman was not making interest payments to the trust. Don't you think that someone holding the CTs and equally ranked paper would have sued if they had a case.

What has changed since that you feel you have a case now, 13 years later? Lets say, according to you, that LBIE and Neuberfer Berman were paid. They were paid before more senior debtholders than the CTs under LBHI. Why wouldn't the court say THEY were incorrectly paid and two wrongs don't make a right.

You guys are not hearing anything from REX because he/they have no case.

[cottonisking]

Many lawyers fear the CTs' monster below. Tell us your position on the monster or join the group.

Joe Stocks:"You still haven't posted what you call the CTs covenants.

Post or share a link?"

"Covenants Of Lehman Brothers Holdings

In the guarantee, Lehman Brothers Holdings will covenant that, so long as any trust securities remain outstanding, if:

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there shall have occurred any event of default under the indenture,

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Lehman Brothers Holdings shall be in default with respect to its payment of any obligations under the guarantee, or

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Lehman Brothers Holdings shall have given notice of its election to defer interest payments and shall not have rescinded such notice, and while such interest is deferred,
then Lehman Brothers Holdings will not, and will not permit any subsidiary to:

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declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a liquidation payment with respect to, any of Lehman Brothers Holdings' capital stock, or"

This covenant is an LBHI global restricted cash flow fraud policy until it is exercised.