Replies to post #15319 on Lehman Preferred Series "J" Preferred (f

[linda1]

Did LBHI end up in bankruptcy due to Liabilities exceeded Assets? - NO



Did LBHI end up in bankruptcy due to a liquidity problem - not enough ready cash? - YES



ASSETS EXCEEDED LIABILITIES at bankruptcy - and so why the low recovery - 25 % - for Creditors?



Is it really reasonable that the assets are only worth 25 % of book value - when the market has rebounded significantly?



Don't forget what Mr. Marsal said in the July 2009 interview - $ 12 B in cash is just a fraction of the total assets left to sell.



I think he was saying a fraction was 5 % or less -



$ 12 B = 5 % of $ 240 B

$ 12 B = 4 % of $ 300 B

$ 12 B = 3 % of $ 400 B

$ 12 B = 2 % of $ 600 B



I have asked others as well and they all agree with me - a small percentage.