Replies to post #114900 on Lehman Brothers Financial SA (LEHNQ)

[BREAKER098]

Lesser amount has not been accepted. Stick to the relevant facts. We know that’s not your style though. Go figure…

[cottonisking]

Ride it out 🐕️:

Trading on the OTC: The fact that the securities are still trading on the Over-The-Counter (OTC) market reflects a market for the beneficial interests in the bankruptcy trust, not an ownership stake in an ongoing business. The value of these traded interests directly corresponds to the market's estimate of future distributions from the trust.

😇

AI
If Lehman Brothers Holdings Inc. (LBHI) were to emerge from bankruptcy as a new company, the holders of capital trust preferred securities with allowed claims would receive their distributions from the existing LBHI Plan Trust, not the new entity. LBHI has already effectively emerged from bankruptcy as a shell entity that manages its remaining assets for the benefit of its creditors. It is currently in a final wind-down phase, and the plan trust handles all distributions.
Here is a breakdown of what would happen:
LBHI has already emerged: LBHI officially emerged from Chapter 11 bankruptcy in March 2012. Since then, it has operated as a liquidating company, focused solely on unwinding its affairs and distributing proceeds to creditors.
A new company is unlikely: While technically possible, it is highly improbable that LBHI would emerge as a new, operating business after nearly two decades in liquidation. Its primary function has been to monetize its remaining assets for the benefit of its creditors.
Plan Trust handles distributions: Since the 2012 plan confirmation, LBHI has been making distributions to holders of allowed claims through the LBHI Plan Trust. The trust holds the sole share of stock in the post-bankruptcy LBHI and is responsible for managing the remaining assets.
No recovery from a "new" company: Even if a new company were to somehow be created from the remnants of LBHI, holders of old capital trust preferred securities would not have any claims against it. Their pre-bankruptcy securities were canceled as part of the 2012 plan. Their rights were converted into beneficial interests in the Plan Trust.
Distributions depend on trust assets: The distributions to holders of trust preferred securities are dependent on the recovery and liquidation of assets by the Plan Trust. These claims are generally subordinate to more senior debt claims, and the ultimate recovery percentage is based on the proceeds available after higher-ranking creditors have been paid.
Trading on the OTC: The fact that the securities are still trading on the Over-The-Counter (OTC) market reflects a market for the beneficial interests in the bankruptcy trust, not an ownership stake in an ongoing business. The value of these traded interests directly corresponds to the market's estimate of future distributions from the trust.