As noted earlier on FT Alphaville:
RTRS – Citigroup, Bank of New York Mellon, Azora Bank, Mizuho Financial Group, among Lehman’s top unsecured creditors.
RTRS – Citigroup, Bank of New York Mellon hold about $138bln of Lehman’s bond debt as indenture trustees, under LBHI senior notes.
This just out from research outfit CreditSights (emphasis ours):
At this stage the details are grey and amorphous, but our early indication of a bankruptcy liquidation has recovery values for senior unsecured debt of 60 cents to 80 cents on the dollar, with our feeling that it should trend more toward the bottom end of the range.
Early trading quotes on such debt are even lower in the $32-35 range, so the nuances of recovery analysis still need to be ironed out. And it should be remembered that recoveries in regulated land are more of an art than a science. In our first cut analysis, subordinated debt and preferred stock seem to be nil.