Replies to post #901 on Lehman Brothers Financial SA (LEHNQ)

[linda1]

I am talking about dividend payments to the Capital Trusts and Senior Preferreds when LBHI was NOT in bankruptcy.


I was just trying to explain to a poster that most of the Prospectus/Guarantee is not referring to a bankruptcy situation.


The dividends are an example of what right of payment all other liabilities of LBHI have over the Capital Trusts and Senior Preferreds - when LBHI was NOT in bankruptcy.


I will list all the excerpts that I find in the Prospectus/Guarantee that pertain only to bankruptcy so there is less confusion.

[linda1]

I don't think there will be any reduction in the Claim for the Capital Trusts - that is based on the Prospectus/Guarantee - if there is enough cash after Senior Debts are paid in full.


The Prospectus/Guarantee is clear that the Capital Trusts are entitled to receive 100% principal and Interest once Senior Debts are paid in full - however only if there is enough cash.