Replies to post #109789 on Lehman Brothers Financial SA (LEHNQ)

[toogoodfella]

RE: some believe all debt will be discharged.

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The large size of debt will cause the stock worthless if all converted into equity. My guess is it will be partial conversion, partial cancellation and some will stay as debt. Nothing is wrong with it as long as both parties agree.

[toogoodfella]

RE: all debt will be discharged.

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Creditors will be unhappy. And may lose the motivation to Capitalize the new LBHI.

But if we expect creditors to capitalize LBHI, creditors will have the majority ownership of the company. They will be the one to decide on what to do with the unpaid debt.