Replies to post #5693 on Lehman Brothers Holdings Inc. (fka LEHMQ)

[marayatano]

Thanks for the post Mookie. SECURED creditors are entitled to interest so long as the underlying security produces more than the amount of the secured debt. Unsecured creditors are not entitled to partial interest and partial principal. All creditors MUST be paid their entire principal before any talk of interest is entertained.

Bottom line: Any recovery by trust pref. is applied to principal, not interest.

Thanks.