Replies to post #1084 on Lehman Brothers Financial SA (LEHNQ)

[linda1]

The 17.4 % will not be distributed all at once unless all liquidation has been completed.


The POR says the distributions will be semi-annual.

[Etrnaly]

I think "paid in full" means the "Estimated Plan Claims" on page 289 of the Disclosure Statement. In this case, $83,723,000,000. Class 3 is getting paid $14,573,000,000, $2,250,000,000 of which is coming from Class 5's distribution.

[stripus]

"Being paid in full" at class 5 and getting nothing will IMO either end up in litigation or shares in Legacy. Who would the remaining creditors be if everyone is paid but class 5?

[sigsauer]

finally someone gets it

[Etrnaly]

"Paid in full" should mean 100% of the maximum allowable claims. In this case, $83,723,000,000. They are getting paid the following based on the plan:

(in millions)
Class 3 => $83,723 * 14.7% = $12,307
Class 5 (C/Ts) => $15,284 * 14.7% = $2,247

All allocations of Class 5 goes to Class 3 first until Class 3 gets paid in full.

Class 3 = $12,307 + $2,247 = $14,554

14,554/83,723 = 0.174 = 17.4%

If you look at the Disclosure Statement, you'll see that it states Class 3 will get $14,573, or 17.4%.

These numbers seem to be off by a few million which I believe is rounding errors. The 14.7% number is probably rounded off, and I rounded off all values to 1 million also. So until Class 3 gets it's full $83B, we get nothing. What I don't understand is how the amount recovered is so low when we should have a lot more in assets the last time we got an update. The total amount of claims recovered in this plan is a little less than $50B. We should have a lot more than that in assets!