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Sutherland Alert: U.S. District Court Affirms Lehman Ruling Raising Concern on Cross-Affiliate Netting

by Paul Turner and Mark Sherrill A recent opinion by the U.S. District Court for the Southern District of New York affirms a 2010 ruling by the Lehman Brothers bankruptcy court, which rendered certain netting and setoff provisions unenforceable in bankruptcy. The core holding - that a counterparty...

FDIC: Creditors Losers, Lawyers Big Winners in Lehman Bankruptcy

According to the FDIC, general unsecured creditors could have recovered 97 cents on every $1 of claims, if regulators had quickly carried out a structured sale of Lehman's assets. Instead, general unsecured creditors will likely receive around 21 cents on every dollar of claims. The FDIC also...

JPMorgan Agrees To Pay Nearly $700M To Settle Claims With Lehman Brothers

NEW YORK - (Mealey's) JPMorgan Chase Bank NA on Feb. 1 agreed to pay nearly $700 million to bankrupt Lehman Brothers Holdings Inc. (LBHI) that JPMorgan had been previously paid for "purportedly secured claims against LBHI on the basis that, as 'affiliates' of JPMorgan Chase Bank,...

Lehman Brothers Agrees To $1 Billion Settlement With Bermuda Affiliates

NEW YORK - (Mealey's) Lehman Brothers Holding Co. Inc. on Feb. 28 agreed to a $1 billion settlement that resolves $2.3 billion in claims brought by the closed bank's affiliates based in Bermuda, according to a brief the bank filed in a New York bankruptcy court ( In re: Lehman Brothers Holding...