Once you verify this information is true....go back and study our prospectus and see the passage that states the guarantee of CT's shall not be discharged (a bankruptcy term) unless paid in full, all principal and interest owed.
Please copy and paste the paragraph in the prospectus where you see that.
From the prospectus;
Upon any voluntary or involuntary liquidation or bankruptcy of Holdings, the property trustee, as holder of the subordinated debentures, would be a subordinated creditor of Holdings, subordinated in right of payment to all senior debt as set forth in the subordinated indenture, but entitled to receive payment in full of principal and interest before any stockholders of Holdings receive payments or distributions. Because Holdings is the guarantor under the guarantee and, under the subordinated indenture, has agreed to pay for all costs, expenses and liabilities of the trust (other than the trust's obligations to the holders of the preferred securities), the positions of a holder of preferred securities and a holder of the subordinated debentures relative to other creditors and to stockholders of Holdings in the event of liquidation or bankruptcy of Holdings would be substantially the same.
and...
Lehman Brothers Holdings' obligations under the guarantee are subordinated to all of its other liabilities. This means that Lehman Brothers Holdings cannot make any payments on the guarantee if it defaults on a payment on any of its other liabilities. In addition, in the event of the bankruptcy, liquidation or dissolution of Lehman Brothers Holdings, its assets would be available to pay obligations under the guarantee only after Lehman Brothers Holdings made all payments on its other liabilities.
You wrote; "Our prospectus agreement, although subordinated to other debt in bankruptcy...has successor obligor guarantees on top of the non discharge guarantee."
and the successor is?? "non discharge guarantee"? I would love to see where you came up with that.
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