There is about 12B free cash (Available Cash) and i will expect that most of this money will be distributed to the creditors in October 3. The remaining asset will be the illiquid as evidenced by the 47.7B under Lamco management. These figures match close to my last March balance sheet calculation of about 60B.. So basically about 48B of illiquid asset is left after the fourth distribution.
This is the point I expect a negotiation with the creditors will happen because a partnership with the existing equity holders is needed to merge with another company for the following reasons:
1. It will take years to liquidate the illiquid and the creditors want their money soon.
2. A partnership will convert the remaining allowed claim into ownership in the form of equity interest.
2. The NOL is not in form of cash. It is indeed a tax attribute that is considered equity and can only be utilized by merging to a profitable company or companies that can use it and profit with it. (NOL)
3. COD for the unpaid allowed claim after a total contribution will only hurt the NOL.
4. A agreement between LBHI and the Creditors will not cancel any debt and thus, will preserve the NOL.
ALL OF THESE ARE ONLY SPECULATION!!! DO NOT DEPEND YOUR DECISION TO THESE!
I could live with that. That is going the non discharge and no reorg route...it is a possibility...This scenario will force new lamco to deal with the CTs before 2016 the 3 years deadline for grandfathered CTs under LAMCO......go figure......devil
Also, It is ridiculous to expect something by reading the prospectus because it is irrelevant as long as the POR which has the highest priority due to Chapter 11 filing is still open. I guess they are forgetting the Chapter 11 when they see those positive things in the prospectus.
Read the Prorata distribution and the definition of "Available Cash".. If you agree that all remaining asset belongs to the creditors, Then you agree that there is no money available to pay or redeem Cts unless if the POR is closed under negotiation of partnership between LBHI and Creditors.
Remember that Cts are Preferred securities which is a equity vehicle outside POR.