lehman 4/22

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Goldman Sachs

1. Lehman Defends Claims Over Massive Swaps Transactions

   Apr 22, 2016 | Law 360

   By Jonathan Randles
   
   
   Lehman Brothers Special Financing on Tuesday defended its bid to sue Goldman Sachs and other banks over the termination of a series of massive credit-default swaps, saying in a New York court filing that it was wrongly stripped of its payment priority status after filing for bankruptcy in 2008.

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

Goldman Sachs

1. Lehman Defends Claims Over Massive Swaps Transactions

   Apr 22, 2016 | Law 360

   By Jonathan Randles

    Lehman Brothers Special Financing on Tuesday defended its bid to sue Goldman Sachsand other banks over the termination of a series of massive credit-default swaps, saying in a New York court filing that it was wrongly stripped of its payment priority status after filing for bankruptcy in 2008.
   
   LBSF's response came against an attempt by a group of banks to dismiss breach-of-contract claims stemming from a so-called Pyxis transaction. The Pyxis transaction is one of several major deals LBSF has filed suit over in an attempt to recover $3 billion it says it was cheated out of by an array of financial institutions immediately after it filed for Chapter 11 protection nearly a decade ago.
   
   The dispute arises from the termination of derivative transactions LBSF entered into related to the issuance of $1.489 billion in notes in 2007. LBSF claims that parties in the Pyxis agreement terminated the swaps transactions prematurely and improperly applied contract provisions that flipped its senior payment priority status — actions that deprived Lehman of significant value it says it was entitled to.
   
   Those changes “wiped out” LBSF’s in-the-money position under the swap agreements, according to the complaint. The defendants who have sought dismissal of the Pyxis claims include Bank of America National Association, MoneyGram Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc., Morgan Stanley & Co, Citigroup Global Markets Inc., Societe Generale Investment Corp. and Goldman Sachs.
   
   LBSF filed a fourth amended complaint in October.

   For full story: http://www.law360.com/articles/786994/lehman-defends-claims-over-massive-swaps-transactions

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