Replies to post #86 on Lehman Brothers Holdings Capital Trust III (LEHKQ)

[lifegear]

"but entitled to receive payment IN FULL of principal and interest before any stockholders of Holdings receive payments or distributions"

nice

[lifegear]

that makes sense, the Capital Trusts if liquidated the principal will still be there plus whatever earned interest they have accumulated in the Trust Accounts

so that's why they're guaranteed imho

$17B held in Trust Accounts represented by Capital Trust Preferred Shares?

did anyone get a hold of the chapter 11 trustee?

[stripus]

So the 3 officer trustees of LBHI would be the Guarantee Trustees as I read this passage. BNYM failed to get these 3 of the 5 trustees involved by not invoking the "guarantee", for the Capital Trust holders, but did get them on board for the senior unsecurred creditors.
This does not look like fair representation to me!

[s404n1tn0cc]

***How low can you go?? Very low. .0001 IMO

LEHMAN BROTHERS HOLDINGS CAPITAL TRUST V

6.00% Preferred Securities, Series M

From the same DOC...

"Lehman Brothers Holdings is not required to pay you under the guarantee if the trust does not have cash available.

The ability of the trust to make payments on the preferred securities is solely dependent upon Lehman Brothers Holdings making the related payments on the junior subordinated debt securities when due.

If Lehman Brothers Holdings defaults on its obligations to make payments on the junior subordinated debt securities, the trust will not have sufficient funds to make payments on the preferred securities. In those circumstances, you will not be able to rely upon the guarantee for payment of these amounts." Too bad sooo sad.

Best bet The Blue Pill.