Replies to post #8734 on Lehman Brothers Financial SA (LEHNQ)

[marayatano]

CT being a hybrid of equity and debt is a misconception. They are class 10b, period. Has nothing to do with class 12.

Prospectuses are only a guide line. BK trumps prospectus.

The POR states that all allowed claims are to be paid in full. After the consummation of the plan, any creditor unpaid will be discharged.

Example: If there is only 18% paid on seniors claims, then the balance of the 82% of the seniors is discharged as well as sub bond, and all of equity.

imo

[lehman]

i agree that ct's are also preferreds, you can see it in description of all 4 ct security once they got reinstated. mine did not had the word 'preferreds' before march 6th. i was wondering why they put the word preferrds now.

may be this is the reason the 5 bonds in class 10b are trading at $0.01 for the fear of discarge whereas ct's cannot be discharged as ct's are also class 12 but 10b prevails?