In re Lehman Brothers Holdings, Inc.
United States Bankruptcy Court for the Southern District of New York
No. 08-13555 (JMP) (2009)
- Written by Brett Stavin, JD
Facts
Lehman Brothers Special Financing Inc. (LBSF) (plaintiff) was a party to a swap agreement with Metavante Corporation (defendant), entered into in November 2007. By May 2009, at which point LBSF had already filed bankruptcy, LBSF’s position in the swap increased in value. Pursuant to the payment terms of the swap, Metavante owed LBSF over $6 million. Metavante refused to make payments to LBSF. In so refusing, Metavante took the position that pursuant to the safe-harbor provisions in the Bankruptcy Code, LBSF’s bankruptcy gave Metavante the right, but not the obligation, to terminate all outstanding transactions under the swap. At the same time, however, Metavante did not attempt to terminate the swap. Metavante declined to terminate the swap because doing so would have required Metavante to pay a termination fee pursuant to the terms of the swap. LBSF brought an adversarial action against Metavante to compel Metavante to perform its obligations under the swap.
Rule of Law
Issue
Holding and Reasoning ()
What to do next…
Here's why 834,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,500 briefs, keyed to 994 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
