Replies to post #95446 on Lehman Brothers Financial SA (LEHNQ)

[JERSEYHAWG]

Cheese.

Dam right I hope next month is the end of this shit.

Remember. You were just a little teeny tiny cheese when this started. LOLOL

I had mostly dark hair and more of it.

[toogoodfella]

all eligible creditors choose to opt in for their final distribution,
—-//——-//—-

WRONG!!
STILL 130B subject to compromise..
“COMPROMISE” is the magic word we still don’t know.

But who cares?? All we want is Lehman goes back to business. Our preferred stocks will stay and CTs will be paid in interest.

[Joe Stocks]

>>WOW so LBHI owes $130bil?? if all eligible creditors choose to opt in for their final distribution, the amount owed will be approx $50bil!! <<

Doesn't work that way. The final distribution only reduces the debt subject to compromise by the amount of the distribution. A distribution final or not is not a settlement of debt. It is not paid in full. It is paid to satisfy debt as to the limitations of what the liquidated estate can pay towards that debt.

Paid in full means the creditors as been paid in full. Paid in satisfaction means the creditor as been paid to the extent of the estate and may claim funds still owed as a tax deduction which generates cancellation of debt income to Lehman which offsets any tax assets (NOLs) they may have.

Those taking the voluntary last distribution can now claim losses if they have them. Many don't as the debt was transferred to them, with the original holder taking the loss, and the buyer of the deby more than likely now having a profit.