Replies to post #2345 on Lehman Brothers Holdings Capital Trust III (LEHKQ)

[marayatano]

Simple answer: Under the POR for Lehman Brothers, Weil had the subordinate class lumped together with the jr. claims. This is not fair to the subordinate claims (especially to me since I paid more for my bonds for extra seniority). Some of the Capital Trusts hold a combination of subordinate and jr. claims.

The POR should have had a class for jr claims (by itself) in which the Capital Trusts would have some claim there as well as the subordinate class.


WMI's POR, the Cap Trust had its own class because it was a jr. claim.

That is the difference.

imo

Do these large law firms own Lehman Capital Trusts?


In the WMI bankruptcy Wells Fargo filed an excellent Claim for the Capital Trust and refers to itself as an Indenture Trustee and a Guarantee Trustee.


The Trustee also mentions the Guarantee at least 3 times in the Attachment to the Claim.


Plus the Capital Trusts are in a Class of their own in the WMI POR and the Subordinate Claims are in another Class.


It would be worthwhile to review the documents filed for the WMI Capital Trust for comparison.