Replies to post #2032 on Lehman Brothers Financial SA (LEHNQ)

[marayatano]

It really depends on what Lehman's version of substansive consolidation will be (since not all of them are the same - case by case) and which subsidiaries will be included, if not all. Until then, we wont know if that class 3 is fully paid then class 5, etc.

Makes a small difference (old POR / new POR) if the there is a new class, ie junior subordinates, which would be lower than class 5 subordinates. Currently, subordinates and junior share a class.

imo

[linda1]

Marayatano has provided no proof that the Capital Trusts are still subordinate under substantive consolidation and so I would not accept what he/she says quite yet.


An article on Substantive Consolidation advises that Creditors contact the Official Creditors' Committee and enquire about substantive consolidation and its impact on claims.



"Constituents of official statutory committees appointed in a bankruptcy case (eg, unsecured

creditors) should take advantage of the recent amendments to the Bankruptcy Code, which place

heightened duties on official committees to report to their constituents, and should actively enquire

about substantive consolidation and its impact on claims."