Lehman Unsecured Creditors – Loss Leader Board

Posted on September 15th, 2008 in Daily Mortgage/Housing News - The Real Story, Mr Mortgage's Personal Opinions/Research

Lehman Owes Largest Unsecured Creditors $157 Billion. Their total debt is $613bb against ‘asset’s listed of $639bb. We know that th ‘asset’ side is wrong so the uunsecured creditors are in trouble, as everyone else gets paid first.

Sept. 15 (Bloomberg) By Jeff St.Onge- Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, owes its 10 largest unsecured creditors more than $157 billion, including debts to bondholders totaling $155 billion and debts to at least seven Japanese bank lenders totaling $1.62 billion.

Lehman said its largest unsecured creditors were Citibank N.A. and The Bank of New York Mellon Corp. in their roles as trustees for bondholders owed an estimated $155 billion. Bond trustees serve an administrative role and aren’t liable for debts to note holders.

The foreign insti’s who stand to lose the most asap are:

  • Aozora Bank Ltd., based in Tokyo, owed $463 million for a bank loan
  • Mizuho Corporate Bank Ltd., owed $382 million
  • and a Citigroup Inc. unit based in Hong Kong owed an estimated $275 million, according to the filing.
  • Shinsei Bank Ltd., owed $321 million,
  • UFJ Bank owed $185 million,
  • Sumitomo Mitsubishi Banking Corp. owed $177 million,
  • Shinkin Central Bank owed $93 million
  • Chuo Mitsui Trust and Banking owed $93 million.

Senior unsecured note holders are owed $138 billion, subordinated unsecured noteholders are owed $12 billion and junior subordinated note holders are owed $5 billion.

More details of US firms with unsecured loans to Lehman will likely come soon. I will keep you posted. –Best, Mr Mortgage


6 Responses to “Lehman Unsecured Creditors – Loss Leader Board”

  1. Hey Mr M,

    Here’s the PDF document for Lehman brother’s bankruptcy filing.


    Credit Default Swap rates are soaring as well. http://www.bloomberg.com/apps/news?pid=20601087&sid=a4G.8Si5v2rU&refer=home

    Credit-default swaps on Morgan Stanley soared 194 basis points to 458 and Goldman Sachs jumped 122 basis points to 321, according to CMA Datavision prices.

    Sellers demanded 50 percentage points upfront and 5 percentage points a year to protect the bonds of Washington Mutual Inc. from default on concern that the biggest U.S. savings and loan won’t survive the credit crisis, CMA data show.

    The upfront cost to protect AIG bonds from default soared 21.5 percentage points to 34 percentage points, CMA data show.

    HSBC Holdings Plc, Europe’s biggest bank, rose 29 basis points to 100, the most ever, according to CMA. Barclays, the U.K.’s third-biggest bank, climbed 38 to 170, Zurich-based UBS AG jumped 39 to 175 and Spain’s Banco Santander surged 22 to 122.

  2. Looks like th Japanese are going to get spanked the hardest by LEH going down. Will this decrease their appetite for US$ products? The Yen is strong. They cant like that. What’re they going to do?

  3. I am an unsecured subordinate bond holder. I think it stinks that the “seniors”, the big guys, are going to get $.60 and I get nothing. Their interest rate was higher than mine. I paid par for mine at new issue. Is there anything we “junior” subordinate bond holders can do to better position ourselves

  4. Hi
    I have a question, Who moderated the forum?
    You can get it icq

  5. Today the U.S. Air Force fired missiles to Pakistan. First Iraq, now Pakistan, the poor people. When you listen to this news, afraid for our planet

  6. Nothing seems to be easier than seeing someone whom you can help but not helping.
    I suggest we start giving it a try. Give love to the ones that need it.
    God will appreciate it.

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