Lehman july 29

Client Attorney Privileged/Attorney Work Product/At Request of Counsel

Intel Corp.

1. Intel Fights Lehman Over Doomed $1B Share-Buy Deal

   Jul 28, 2015 | Law360

   By Jonathan Randles
   
   
   An Intel Corp. attorney argued Tuesday in New York bankruptcy court that Lehman Brothers Holdings Inc. is on the hook for $1 billion plus interest for failing to deliver on a stock-purchase agreement when the investment bank collapsed in September 2008.

Full Text of Stories Below

Client Attorney Privileged/Attorney Work Product/At Request of Counsel

Intel Corp.

1. Intel Fights Lehman Over Doomed $1B Share-Buy Deal

   Jul 28, 2015 | Law360

   By Jonathan Randles

   An Intel Corp. attorney argued Tuesday in New York bankruptcy court that Lehman Brothers Holdings Inc. is on the hook for $1 billion plus interest for failing to deliver on a stock-purchase agreement when the investment bank collapsed in September 2008.
   
   Intel attorney John Buckley Jr. from Williams & Connolly LLP said the computer chip maker provided a billion dollar prepayment to Lehman weeks before the firm filed for bankruptcy, a shocking development that touched off a global financial crisis. During a hearing in Manhattan, Buckley told U.S. Bankruptcy Judge Shelley Chapman that Intel got nothing out of the deal.
   
   “Lehman totally failed to perform,” Buckley said. “They didn't deliver shares, or cash, on the due date.”
   
   The dispute between Lehman and Intel stems from a share purchase agreement the parties entered into in August 2008. The arrangement, which was between Intel and Lehman subsidiary Lehman Brothers OTC Derivatives Inc., was intended to allow Intel to acquire more than 50 million shares of its own stock during a "blackout" period when it was barred from buying its own shares, according to court papers.
   
   Intel sought to retire the shares to benefit its shareholders. The deal contained agreements in the event of a default or early termination, which allowed the nondefaulting party to “set off,” or collect, the amount it was owed from other party’s collateral.
   
   About two weeks after Lehman’s collapse in September 2008, Intel demanded that Lehman hand over the 50.5 million Intel shares. When Lehman failed to do so, it declared an early termination of the swap and proceeded to exercise its set-off rights to claim just over $1 billion of collateral and interest posted by the Lehman OTC unit.
   
   Lehman, which filed suit in May 2013, has argued in court papers that Intel's true losses are $873 million. The bankruptcy court is considering separate motions for summary judgment that have been filed by both Lehman and Intel.
   
   Lehman is represented in the adversary proceeding by Robert W. Gaffey, Jayant W. Tambe and Mahesh Venkatakrishnan of Jones Day...

   For full story:

   http://www.law360.com/articles/684391/intel-fights-lehman-over-doomed-1b-share-buy-deal-
   

   Return to headline | Return to top

Full Text of Stories Below