My understanding of the Lehman issue is:
1. The company has sued Lehman for mishandling its investments and expects a windfall if it prevails.
2. The company sold its Lehman "customer account" to a third party and has recorded a loss on this transaction. Any settlement of customer accounts by Lehman trustee, such as payment in full, will accrue to the third-party buyer of this account, and FOUR will get none of it .
Can someone clarify if my understanding above is correct?
Simply put, the 4Kids claim was put into the general unsecured pool of claims. The claim was for 30 or so million, plus the lawsuit was claiming treble damages, so multiply that by 3. That won't happen. What will likely happen is that they will get a settlement of 10 million or so. As a strict general unsecured claim they are probably in line to get 15-20 cents on the dollar, which would put them at 5 or 6 million, but because they have a reasonable case in the suit, they might get a little more in order to end it.
Worst case scenario is that they get a payout like the rest of the general unsecured creditors. Probably no less than 10 percent, and no more than 30 percent of the 30 million in lost money. They did actually get something when they cashed in their Auction Rate securities, so they true loss is probably 20 something million, as they had sued before they had cashed in a single Auction Rate Security at substantial loss.
It will be gravy, whatever it is. Whether it is BIG gravy, or just average gravy, only time will tell.