Replies to post #115411 on Lehman Brothers Financial SA (LEHNQ)

[indepth05]

Several significant recoveries are
Excluded from lbhi balance sheet

[s404n1tn0cc]

The shop is about to close. The Custoodian will soon be given the keys.
Only questiion remains is will we recieve the same prorated 40
percent to the Cap Trust.and Preferred shares as the Senior claims.
IMO

[indepth05]

Repost....TGF..

Several significant recoveries are excluded from LBHI balance sheet.
(Estimated $65 billions) for the following legal reasons:

1-Uncertainty and Contingency: Recovery on excluded and disputed claims is uncertain pending litigation, settlement, or final adjudication.

2- Accounting Standards: Conservative accounting requires excluding contingent assets until realization is probable and estimable.

3- Bankruptcy Process: LBHI’s financial disclosures reflect estimated “cash available for distributions” to allowed claims rather than potential maximum recoveries including all disputed or excluded claims.

4- Separate Entities: Amounts due from/to non-controlled affiliates or subsidiaries are not always consolidated directly onto LBHI’s standalone balance sheet.

Yes or No??... :)

[toogoodfella]

YES AND NO.Receivables, payables between LBHI and affiliates are internals. It is not a gain nor a loss. It only settles each other account. What really counts for LBHI is the resulting amount it owns that adds up to its asset for the distributions.
The 65 B estimate is if all asset was auctioned(chapter 7)  but I have said many times that the decision was to liquidate slowly in chapter eleven, taking its time until the market condition is right to maximize the recovery.
That alone gave me an idea that LBHI will continue to exist.