Replies to post #2377 on Lehman Brothers Holdings Capital Trust III (LEHKQ)

[chaarles]

that was classic. I hope we got to see the wrath of Walrath.
Anyway, I am real confuse here.
I've been thinking that class 5 was only subordinated to class 3 and class 4 unsecured claims.
This is driving me crazy, "capital trust", "guranteed" sounds real good, "subordinated unsecured" sounds bad. SOS.
It is said that in a event of default (as bankruptcy) the noteholders gets property priority in the collateral assets guaranteeing the notes, from the debtors.
I would think that the notes have collateral assets that should be used for payment of those notes.
I would not understand that they can use those collateral to pay claims in class 7 or 8.
And there is the docket, if someone can read it and post a comment, that would help, I've read it and to me looks like they want to make a nice profit with these notes.
NOTICE OF THE DEBTORS’ MOTION PURSUANT TO SECTIONS 105(A) AND 363 OF THE BANKRUPTCY CODE FOR AUTHORIZATION TO PURCHASE AND SELL NOTES ISSUED BY CERTAIN SPECIAL PURPOSE VEHICLES THAT ARE PARTY TO TRANSACTIONS WITH CERTAIN DEBTORS


TIA