Replies to post #13545 on Lehman Brothers Financial SA (LEHNQ)

[joyceschoice]

Compromises are made between many parties, timelines for repayment are adjusted to suit, and after the "perfect storm" there's an aftermath party. I hope we're all invited.

This board hosts a spectrum of opinions between $0 and $34 at the high end for the CT's. My expectations are in the lower bell curve of those two extremes and I just have to wait for the party to be announced.

I do enjoy reading all the thoughts on the board whether I agree or not.

[Jimzin]

I hear ya...

I've only got commons and there is nothing for me to do but wait it out. I'm rooting for the CT's, mostly because I've grown fond of the great brains on this board and for all the DD that has trickled down to me as a commoner.

My gut tells me there is no way I'll ever see a dime...all my stocks go down...just like my wallet in Las Vegas. But I keep playing! no risk no reward, right?

The only thing I keep thinking about is the CT's are still trading...I suppose they could be trading because there is some outside chance that the senior notes could receive 100% payout???

seems like it would be illegal to have CT's trading right now IF Lehman knows full well they will be discharged upon BK closing.

I don't know, it's weird they are not in the OBS with other equity.

Cheers

[wayne49]

There is a saying in the field of law. The law is for interpretation and not for common sense. If a lawyer fights a case using common sense, he/she will lose 90% of the time.

[hestheman]

Sure it makes sense. First off, secure creditors are being paid in full...as in 100 percent on the dollar. Senior unsecured debt agreed to some .18-20 on the dollar. Lehman is liquidating assets to pay the amount of $65B (or less) If Lehman should receive more from the assets they are liquidating to pay the $65B.....that money will be extra recovery for those senior unsecured creditors. The $35B more/less that will be left over is not a part of the distributable asset. That money will likely be value in the new company.....The RESIDUAL amount left for reorganization :) The seniors are not really getting the shaft, alot of that debt was bought for pennies on the dollar and they are probably making a profit. Some of those creditors may receive a stake in Archstone or other stock issues as may we. One thing I am almost certain of is that we will not be discharged/cancelled.