Judge Peck granted Lehman's Motion to inject Aurora with sufficient Capital to leave it "highly capitalized." Initially, the Tier 1 Capital will be around 20% (way above the amount to be considered highly capitalized.
Additionally, the Capital Maintenance Agreement ("CMA"), Lehman commits to further injection(s) of capital to have a minimum Tier 1 Capital of 11% and an "At Risk" Capital of 15%, IIRC.
Furthermore, the CMA will allow Lehman to shop around a now highly-capitalized Aurora (aka, EOSPN), to a bunch of banks without worrying that regulators will seize the bank and/or worrying about having to dump at fire sale prices.
Bottom-line:
The EOSPN shares WILL be redeeemed within the next 18 months, if not sooner. OTS will back off and allow Aurora/EOSPN to conduct its business without having to say "mother may I?" each time it wants to declare a dividend, etc.
The reason for wanting to redeem CCPCN/EOPSN back in October 2008 is even more compelling now, given that interest rates have fallen even further.
Again, JMHO, but EOSPN will be taken out at $25.00/share, sooner rather than later.
David
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