Replies to post #23796 on Lehman Brothers Financial SA (LEHNQ)

[mik1]

Im not sure about it is good news or not. It seems related with the 2B line on restricted cash summary. In last MOR:

(5) Represents cash deposited on or prior to September 15, 2008 by the Company in connection with certain requests and/or documents executed by the Company and Citibank N.A. of approximately $2 billion and HSBC Bank PLC of $30 million, including interest earned thereon. The Company is in discussion with HSBC Bank and commenced litigation against Citigroup regarding these deposits.

[mik1]

I was reading some dockets about Citigroup´s litigation and recorded reserved against the cash deposited. I believe now this agreement releases almost 1B from restricted cash. Without considering the disputed unsecured claims, I read that almost 3.5B could be released from restricted cash:

Cash pledged to JPM (CDA) 316B, with recent LBI/LBHI agreement involving CDA.
Priority Tax claim - IRS, 2.2B ( NOLs are not included in the claim)
Citigroup, almost 1B (2B-(1.2B-167M))from recent agreement.



Cotton, what do you think? thanks