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Main Street Gas Bondholders Take Action

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<h3>Jay Abrams</h3>

Jay Abrams

In reaction to the bankruptcy of Lehman Brothers Holdings, Inc. (LBHI), institutional holders of the Series 2008A bonds issued by Main Street Gas are forming a bondholders’ committee to better represent investors’ interests. Major investment firms that purchased the bonds included Franklin Funds, Nuveen, Putnam, Oppenheimer Funds, Pioneer and others. The committee will seek to direct Bank of New York, the bond trustee, to proactively represent bondholder interests should Main Street fail to meet its payment obligations.

Barclays, the large British Bank, has announced it plans to acquire the investment banking and capital markets divisions of Lehman Brothers’ North American operations. Details on exactly which operating units are included in the Barclay’s purchase are not yet clear, and may not be for some time.

Jay Abrams is the Chief Municipal Credit Analyst of FMSbonds, Inc.
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Sep 17, 2008

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