Australian Securities Exchange (ASX) listed, Mahogany Capital is voluntarily suspending the trading of its $75 million Notes Series I ahead of possible financing issues with Lehman Brothers.

The firm announced the trading halt two days ago and then officially suspended yesterday.

According to a statement, Lehman Brothers Special Financing is the portfolio counterparty of Saphir Finance Public which issued the Saphir Notes, the notes used by Mahogany Capital in its Notes Series.

Mahogany Capital is working with security trustee, Perpetual Trustee Company, custodian and trustee Bank of New York Mellon and the note trustee of Mahogany Notes I to clarify its position.

"The reason for the suspension is the uncertainty surrounding the bankruptcy filing of Lehman Brothers Holdings and its impact on the Mahogany Notes I," said Nicholas Geddes, Mahogany Capital company secretary in a statement.

"Directors hope to be in a position to provide further details of the position and, if sufficient details become available to clarify the position, will request lifting of the suspension by Wednesday 1 October 2008."