Replies to post #5330 on Lehman Brothers Financial SA (LEHNQ)

[linda1]

"As for the use of "former" rather than "present", I assume it's simply a reference to the current LBHI shares held and cancelled (former entitlement) to be reissued as The Plan Trust stock."



I thought the above too from the definition in the Plan and DS - however there are extra wordings here -




"1.1 Purpose of the Plan Trust. The Plan Trust is established for the sole purpose of (i)

holding the Plan Trust Stock in accordance with the Plan ....................... for the benefit

of the Beneficiaries consistent with the relative priority and economic entitlements of their

former holdings of LBHI Stock immediately prior to the Commencement Date."



"COMMENCEMENT DATE" means the date of bankruptcy. So the above statement reads to me that former holders of LBHI Stock immediately prior to the bankruptcy date will be "Beneficiaries". Now read the the next excerpt -



"WHEREAS, the Plan Trust is created on behalf of, and for the sole benefit of, the

holders of record of LBHI Stock (including any permitted successor record holder thereof, the

“Beneficiaries”);"



SUCCESSOR RECORD HOLDER - I think is a buyer of LBHI Stock after the Record (Date) of Holders prior to the Commencement Date. Or a buyer after the Commencement Date - and then only if permitted to be a Holder of Record by the Debtors.


I may be wrong but that is how it reads to me - and it sure is suspicious to me - this Plan Trust for just 1 share. And no mention of preserving the NOLS - and yet there are "Beneficiaries".



EFFECTIVE DATE - is after a Plan is approved and is the Date the Debtors emerge from bankruptcy.