Replies to post #115199 on Lehman Brothers Financial SA (LEHNQ)

[cottonisking]

💔 Please AI, CTs' and Plan Trust:

Your Lehman Brothers Holdings Inc. (LBHI) capital trust preferred securities were canceled on March 6, 2012, because on that day LBHI emerged from Chapter 11 bankruptcy and converted into a liquidating entity. The "restart" of trading on March 12, 2012, was not a resumption of trading for your original securities. Instead, new securities were issued representing the right to receive distributions from the liquidation of the Lehman estate.
Here is a more detailed explanation:
March 6, 2012: Lehman Brothers Holdings Inc. emerged from bankruptcy after its reorganization plan was confirmed in December 2011. All pre-petition securities, including your trust preferreds, were officially canceled and extinguished. The company ceased to be a functioning investment bank and was instead transformed into a liquidating entity, with a new board focused solely on selling off its assets to pay creditors.
March 12, 2012: Trading began for the new "liquidating trust" or "plan" securities. These were not the original trust preferreds, but rather new instruments reflecting the right to receive a share of the proceeds from the estate's asset sales. Your original securities were gone, replaced by this new right to a partial payout.
Payouts: Creditors, including holders of the capital trust preferred securities, received partial payments over time as Lehman's assets were sold. For many creditors, the payouts were significantly less than the face value of their original holdings, with one estimate indicating less than 50 cents on the dollar for the average creditor.