Replies to post #12101 on Lehman Brothers Financial SA (LEHNQ)

[marayatano]

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

[basha]

"I was amazed when they took us out of the trust and back on the grays after the effective date. IF we are in a death march why bother letting us starve in the grays before we are put to death?"

one reason possible is change of ownership which can make NOLs obsolete...one thing is pretty sure...it is not bec of LOVE towards CT's...every move LEH making during this BK is well thought one...they spend lot of money for it to make laws favorable to them to downplay assets and all other possible gimmicks...almost all companys do that...take for instance KMART and how they downplayed the assets during BK and after BK how their assets increased multiple fold and huge run with the stk