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As the equity and bond markets recovered last year, private equity deal makers started looking for new purchases - and more important, moved to find buyers for existing holdings.
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Second, to recapitalise the bank, preferred-stock and subordinated-debt investors would have converted their approximately $25 billion of existing holdings in return for 50% of the equity in the new Lehman.
Genii, the Luxembourg bidder, has a number of existing holdings in the auto industry.
The plan that leaders worked out in July also calls for banks and other investors to swap some of their existing holdings for new bonds that would be worth less but carry guarantees.
Greece wants banks and other investors to swap at least 90 percent of their existing holdings for new bonds that would be worth less but carry guarantees.
Some private equity firms are trying to salvage overleveraged companies acquired during the boom by asking debt investors to exchange their existing holdings for other kinds of debt that may be less desirable.
He owns convertible debentures in Investor that, exchanged for stock and added to his existing holdings, would give him a 6.5percentt stake, which would be the largest stake held by an individual after Peter Wallenberg.
As for the larger institutions the gifts strengthen existing holdings.
The firm has taken steps to shore up that portfolio, including by designating about half of its existing holdings and all of its new purchases as hold-to-maturity, which allows for a different valuation of those securities.
Investors will simply recycle their existing holdings.
He keeps researching and restoring his existing holdings.
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