Replies to post #114851 on Lehman Brothers Financial SA (LEHNQ)

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💲 Post Discharge Interest 💲:

After the discharge, the legality of LBHI's plan trust paying back interest on Capital Trust Preferred Securities' allowed claims hinges on the specifics of the approved plan.
Plan Governs Payments: The LBHI Plan Trust, as the legal successor to LBHI, operates under the terms outlined in the Plan of Reorganization.
Allowed Claims: The Plan dictates which claims are "Allowed Claims" and eligible for distributions, potentially including interest as specified in the Plan.
Trust Preferred Securities: While trust preferred securities typically allow for deferred dividends, they also have provisions for acceleration and payment of principal and interest if cumulative dividends are not paid over a certain period.
Plan Adjustments and Interest: LBHI has reserved for potential obligations, including corresponding Plan Adjustments and interest calculated pursuant to the Plan, particularly for certain allowed claims.
Therefore, whether the plan trust can legally pay back interest depends on the specific provisions within LBHI's confirmed Plan of Reorganization governing the treatment of allowed claims, including any stipulations for post-discharge interest.