Replies to post #5364 on Lehman Brothers Financial SA (LEHNQ)

[hestheman]

Not necessarily, there may not be enough old cold senior debtors to preserve max NOLs. A HUGE market for Lehman debt/bonds were made after the bankruptcy. Allthough post BK shareholders can be used in a chapter 11 reorg to maintain max NOLs investors (or vultures) who purchase debt instruments for pennies on the dollar cannot be used to preserve NOLs. In fact, we are walking a fine line with cap trusts. It all depends on one's interpretation of BK rule 382.

[linda1]

Old Debt is any Debt - Senior or Junior - that is still outstanding.