Replies to post #9925 on Lehman Brothers Financial SA (LEHNQ)

[littledevils90210]

basha: that is my only issue with his analysis but its a VERY THOUGHT OUT analysis.

I think CTs will be paid out by the NOL proceeds because 10B is siphoned and reallocated to other classes. What does that mean? It means to me that 10B is a place holder for us in debtorland. If and when NOLs is used via merger or whatever, the proceeds will go to the debtors first which IMO will satisy all debtors and would eventually flow to our 10B place holder and come to us.

keep in mind we only need 1.3 billion to see redemption value. From the BS info just released, some claims are being reduced and there are operations writeoffs which adds to the NOLs. Which means less debt and more NOLS which is good for us right?....JMHO...go figure..devil


HEISTHEMAN have a very thought out logical post and I agree with 98.786% of it. :).......go figure...

[hestheman]

Very good question. Sometimes even I forget about the reallocation. I think it very well could but I am not 100 percent positive. Of course, when you think about it... redirecting any monies that might have flowed to us to higher classes assures that the waterfall stops just short of us, thereby also assuring they can use CTs in the reorganized company to preserve max NOLs, which is what I have predicted all along. Good thoughts....Good post.

[cottonisking]

JPMorgan has already used the $8.6 Billion to pay off their internal security contracts. Therefore, in order to treat all of class 10B the same our money or allocation must come directly to us.


For example, currently all of class 10B is being reallocated to higher classes, however, JPMorgan did not pay part of the $8.6B to Lehmans higher classes, JPmorgan used the $8.6 Billion to cover their internal shortfalls and their affiliates shortfalls.