EQUITY: you NEED NO OWNERSHIP change of EQUITY for 3 years to retain tax attributes. Hence you have Lehman lock up equity for 3 years. Coincidence? Nope, there is a reason. It is on the POR.
CT/Subordaintes: you NEED CT/Subs because it give seniors MORE money if they keep CT/Subs alive until there is NO MORE DISTRIBUTABLE assets/cash. WITHOUT CT/Subs, the seniors do NOT get an extra payment.
Once all of Lehman is liquidated, CT/Subs has served its purpose i.e. REALLOCATION of lower creditor distribution to HIGHER creditors, then senior claim DEFICIENCIES are Discharged as well as anyone lower in the food chain.
Lehman's POR is setup that way for a reason, i.e. Seniors HAVE to be paid In FULL before a junior creditor gets a trickle.
People as posting what in the POR but mis-interpreting it.
Ask
imo