Lehman Announces Bankruptcy Filing For Holding Company

Posted by John Carney, Sep 15, 2008, 12:32am

Lehman Brothers has officially announced that its top-level parent company, Lehman Brothers Holdings Inc, will file for Chapter 11 bankruptcy protection. None of its subsidiaries will be included in the filing and will continue to operate, according to the press release Lehman issued.

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Comments

1

Posted by guest , Sep 15, 2008 12:49AM

To Lehman employees, consider the Chapter 11 bankruptcy to be an act of mercy for all of you. At least you MAY have a job after all.

This goes to show that Lehman DOES care about its employees ... a little bit. Lehman is doing everything they can to protect its employees even as the company implodes.

2

Posted by guest , Sep 15, 2008 12:49AM

first?

3

Posted by guest , Sep 15, 2008 12:55AM

So are the Lehman trading desks open tomorrow for business?

4

Posted by guest , Sep 15, 2008 12:57AM

closed. AUS suspended trading on lehman already.

5

Posted by guest , Sep 15, 2008 12:57AM

Off Subject:

CNBC has incredible commercials at this hour, anyone catch the Penthouse Executive Club one?

6

Posted by guest , Sep 15, 2008 12:57AM

Off Subject:

CNBC has incredible commercials at this hour, anyone catch the Penthouse Executive Club one?

7

Posted by guest , Sep 15, 2008 12:58AM

From the statement, both content and date, it appears that the contingent swap trades made Sunday are void.

Not that much was accomplished in that session anyway.

9

Posted by guest , Sep 15, 2008 1:00AM

Yeah, the executive club one was fantastic. I loved the requisite woman at the table for dinner, quickly dispatched for the after events.

10

Posted by guest , Sep 15, 2008 1:01AM

LOOK AT THIS. A WEBSITE FOR LEHMAN EMPLOYEES TO SEND THEIR RESUMES IS UP FOR SALE ON EBAY. PRETTY SMART I MUST ADMIT.

http://cgi.ebay.com/LEHMAN-BROTHERS-COLLAPSE-RESUME-DOMAIN-NAME_W0QQitemZ320299542422QQcmdZViewItem?hash=item320299542422&_trkparms=72:1163|39:1|66:2|65:12|240:1318&_trksid=p3286.c0.m14

12

Posted by guest , Sep 15, 2008 1:02AM

WWW.LEHMANRESUMES.COM

13

Posted by guest , Sep 15, 2008 1:06AM

Oh, whew! It's just the holding company. That's great news, because I was worried that some of their subsidiaries, like Slime and Slimier Ltd, Amalgamated Sleaze, and ScamCo might be in jeopardy. Looks like we dodged the bullet on this one boys!

14

Posted by Anal_yst , Sep 15, 2008 1:35AM

I like the "...LBHI is exploring the sale of its broker-dealer operations and, as previously announced, is in advanced discussions with a number of potential purchasers to sell its Investment Management Division (“IMD”). LBHI intends to pursue those discussions as well as a number of other strategic alternatives..."

Oh yea? Care to elaborate anyone?

15

Posted by guest , Sep 15, 2008 2:53AM

My apologies for not understanding this whole process in greater detail. I am an older person (near retirement age), and my broker informed me on Friday night that he has been sitting on over 4000 shares in LEH (common stock) since January.

I am in a panicked mode right now (can hardly breathe), and I have many questions. Help!!

1. Are my holdings in LEH now worthless?

2. Can someone with some knowledge of Chapter 11 AND Parent/Subsidiary Issues provide some guidance as to what are the possible outcomes with my shares?

3. Should I sell these shares first thing this morning during pre-market, or is it possible that these shares could regain value (or receive a payout) in the future?

4. If LEH emerges from Chptr 11, would it issue new shares or trade with the old ones?

Any other advice? If you think I'm an idiot, providing me with a link that would explain this stuff would still be appreciated, especially the whole Parent-Holding Co vs. Subsidiary thing as to the Chapter 11 filing.

Thanks in advance.

16

Posted by guest , Sep 15, 2008 5:23AM

1) Pretty much so.
2) Outcome: You're screwed.
3) The stock will be frozen, you won't be able to sell them. Even if you could, the stock would be worthless, so no one would buy it. If all the creditors get paid off, you could get a proportionate share of what is left after that, but this isn't going to happen. Their debts exceed their asset values.
4) Lehman filed bankruptcy to wind up, not to continue as a going concern. It won't be reissuing stock.

17

Posted by guest , Sep 15, 2008 7:28AM

15 -

You own common stock that was worth $240K (calling it 4K shares for ease of math).

1. LEH is trading well below a buck in pre-market.

2. This money is gone.

3. LEH will be halted. Not that this matters, as the pre-market trades have established that LEH is worthless.

This is a bankruptcy. The reason people are bailing on the stock is that common stock holders are subordinated to everyone else in a pre-defined pecking order in bankruptcy proceedings. They get paid last, which means they don't get paid.

4. LEH isn't coming out of bankruptcy.

So your stock is worth somewhere between <$1 and zero. There isn't anything you can do about this to recover its value. It is toast.

18

Posted by guest , Sep 15, 2008 8:53AM

reorganization obviously a better alternative to selling yourself for a penny on the dollar if you know you're worth more.

19

Posted by EconAnalyst , Sep 15, 2008 9:49AM

Carney,

Good job this weekend. Hope you got some sleep.

20

Posted by guest , Sep 15, 2008 1:53PM

This one on ebay is better lehmanbankruptcy.com I am sure a law firm will pick it up for the class action lawsuits that are about to come

http://cgi.ebay.com/lehmanbankruptcy-com-lehman-brothers-bankruptcy_W0QQitemZ280267295899QQcmdZViewItem?hash=item280267295899&_trkparms=72%3A1163|39%3A1|66%3A2|65%3A12|240%3A1318&_trksid=p3286.c0.m14

21

Posted by guest , Sep 15, 2008 1:54PM

This one on ebay is better lehmanbankruptcy.com I am sure a law firm will pick it up for the class action lawsuits that are about to come

http://cgi.ebay.com/lehmanbankruptcy-com-lehman-brothers-bankruptcy_W0QQitemZ280267295899QQcmdZViewItem?hash=item280267295899&_trkparms=72%3A1163|39%3A1|66%3A2|65%3A12|240%3A1318&_trksid=p3286.c0.m14

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