100% Capital Trust securities will have their day of vindication. Not only is there just too much $$$ recovered in the subsidiaries - but it only takes around $1.2B to delist (liq fee min @25.00USD/share) "liquidate" these fees, it also takes another $30 per share <$3B total for LBHI to pay off the statutory interest owed on cash quarterly distributions since 09.17.08 when suspended for the four CT's. These are insolvency proof. But we know - even in 2008 - Lehman was not insolvent. They remain proving this in the tens of billions in surpluses achieved for the subsidiaries. These subsidiaries will issued billions to LBHI for inside-corporation lending from parent to subsidiary. In fact 80+ LBHI subs worldwide settled these debts out of court, we have no clue as to the amount - but if you think a subsidiary can reach a $16 B surplus like LBIE in 2022, LBI reaching surplus recovery as a main broker-dealer of LBHI etc... you would think they can at least afford $55/share for 48 Million CT Preferreds with a GUARANTEE. It just can't move sub debentures while LBHI is still frozen from these actions as its CH 11 is not done until all $ is recovered from inter-corp lending to its worldwide subsidiaries LBH PLC included, and the ongoing litigation with siginifcant implacations to $ available in the LBHI parent being rep by DB and LBIE vs. Assured Guarantee FP is settled in the February 2024 2nd District NY Appellate Court proceedings. BTW - Andrew Rossman (the lawyer leading our appeal against AGFP) lists the 2nd District NY Appeals Court as one of his areas of expertise on his profile at his law firm. This guy took it to JPMC for $1.5+ Billion on behalf of Lehman prev and is going to get this sorted out. Obviously, 15+ years later the AGFP way of "valuing" LBHI's CDS position is proven flawed, and flat out wrong. Look at how much the MBS, CRE, CLO, and even CDS market has flourished since 2012-2019 (for CRE) and up to 2022 for resisdential.. QE + the recovery of the assets tied to these securities even outright LBHI owned real estate sales over the last CRE boom has led to MANY ways to prove these CDS positions are worth the money relative to the positions they were supposed to insure.
I'm not a lawyer, but I am also calling bullshit that these positions cannot be valued. They owe money. The premiums were paid. Rossman already took it to JPMC for billions - AGFP owes these payments. Their little auction done immediately in the aftermath was simply not a correct way to value these financial products. In fact, the market appetite for these MBS, CRE, loans, etc have proven the value tied to insuring these positions. I doubt Rossman and LBIE, DB is going to lose here. If anything the LBHI recovery from Tier X and Tier Y of LBH PLC is just the only part left necessary before a proper appellate court win for LBHI to FINALLY come out of the litigation tied to CH 11 LBHI PT - and then we CT holders will see our sub debentures, min $25/share value, maybe a return to NYSE, maybe an offer after our statutory interest is paid and the spot market value rises to the liq value guarantee min - to buy out the next 28-30 years of quarterly interest owed in continued operations of the CT's in a lump sum we vote on to take our cash and then LBHI doesn't need to keep operating this DST/CT setup. That is only reasonable. See we have a bit more in play than ECAPS imo. ECAPS were used to capitalize LBH PLC and they aren't tied to the LBHI assets/sub debentures or our guarantee and insolvency proof liq fee/stat interest owed (around $2 a year = $30 per share). It's not like we're so much looking to receive a payout from the estate on the bankruptcy, more like we're waiting to unfreeze LBHI from the CH 11 litigation and recoveries it is owed from inter-corp lending to its subsidiaries (its still recovering - which is good) - then resume our operations. We WILL receive quite a return.
I hope that makes sense.
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