Replies to post #13564 on Lehman Preferred Series "J" Preferred (f

[slimugrian]

When I first read the Reuters article I thought the same way as everybody else here.

Docked says that Archstone was publicly traded before the takeover. Every company must have common share(s), thats not a question. I don't know if Archstone has preferred shares. Only reasonable conclusion is that there are existing Archtones preferreds otherwise there would be no need to state that in the docket.

If that 5,2 bln is on LBHIs balance sheet (like article says: Lehman wants to swap $5.2 billion of loans used to fund the buyout ") then it's someones elses money and that someone else must have filed a claim. Lets zoom out: why would A&M only convert that 5,2 bln into preferred shares. Rest of the claims should be also converted? It does not make sense?

And, getting rid of 150 million annual interest payment, that would help LBHIs balance sheet not Archstones.

Please note that English is my second language and I may be reading this all thing wrong.

[rlinterests]

What does Lehman want to do?
swap $5.2 billion of loans used to fund the buyout into preferred equity interests
What will be the result?
(The new) preferred equity interests, which would be senior to existing preferred and common equity
Obviously, it would be put over preferred and common equity

Loans are debt and already have priority and are senior to existing preferred and common equity interests.

Do you really expect debt holders/bond holders to convert their debt interests into Preferred equity interests that are equal to or less than the existing preferred and common equity interests?