>>CT's are a debt with preferred stock interest. <<
The CTs have NO preferred stock interest. Read the prospectus. There are no conversion rights to preferred shares. And why would anyone want to convert with the traditional preferreds being lower ranked. If the CTs are not satisfied as a debt instrument, there is no way they will see a recovery as a preferred.
Here is the link. I have no problem sharing links when requested. That makes it that we both are looking at the same information and that it can be read in context. That is what adults with character and integrity do. They don't emulate the bad behavior of the worst because they think it popular. https://www.sec.gov/Archives/edgar/data/806085/000104746905000357/a2149684z424b2.htm
Let me explain 15.2 to you which falls under Article 15 - Miscellaneous Provisions. Here the Modified Plan says (in a nut shell) that the plan administrator at his DISCRETION may allow transfer of assets to a new or existing entity to facilitate the liquidation of those assets. Shares of that entity will be distributed to those having "Allowed Claims or Equity Interests against a Debtor that contributed assets to the entity issuing New Securities." And the shares distributed will be counted as a distribution from the estate as valued.
No where is 15.2 does it say that the plan administrator can distribute un-issued treasury preferred shares to creditors. That would be something Lehman would have to do and not the trustee. And Lehman can only do that once all the creditors have been satisfied in full and the trustee returns remaining assets over to the estate. And in that regard, we know that there will be no assets to be returned to the estate. The plan administrator is only charged with liquidation the assets of the estate. They have no authority to issue Lehman common or preferred shares.
In addition, this provision was never used. And with the last quarterly report showing only $2million in real estate remaining, it will not be used in the future. You have confused the plan administrator with Lehman.