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Lehman March 5

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

    Giants Stadium LLC

  1. Lehman Settles Lawsuit Against N.Y. Giants

    Mar 4, 2015 | The Wall Street Journal - Bankruptcy Beat

    By Patrick Fitzgerald

    Lehman Brothers and the New York Giants have settled their long-running dispute over a soured interest-rate swap tied to the financing of the football team’s stadium. Lehman sued Giants Stadium LLC in 2013, claiming it was owed $100 million under the swap. Giants Stadium LLC was set up by the team’s owners, the Mara and Tisch families...
  2. Lehman Settles Bond Swap Fight Over Giants Stadium

    Mar 4, 2015 | Law360

    By Andrew Scurria

    Lehman Brothers Holdings Inc. has put to rest a lingering dispute over soured swaps deals to finance the construction of MetLife Stadium, reaching a settlement with an affiliate of the New York Giants football team that claimed it was owed $302 million on interest hedges.

    3. Setai Hotel

  3. $90 Million Sale of Setai Miami Beach Complete

    Mar 5, 2015 | Miami Herald

    By Hannah Sampson

    The five-star Setai Miami Beach is now owned by two iconic fashion families after the hotel’s $90 million sale closed last week. Nakash Holdings, controlled by the founders of jeans company Jordache Enterprises, announced it was buying the property from a subsidiary of Lehman Brothers Holdings in December.

    4. Full Text of Stories Below

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

    Giants Stadium LLC

  1. Lehman Settles Lawsuit Against N.Y. Giants

    Mar 4, 2015 | The Wall Street Journal - Bankruptcy Beat

    By Patrick Fitzgerald

    Lehman Brothers and the New York Giants have settled their long-running dispute over a soured interest-rate swap tied to the financing of the football team’s stadium.

    Lehman sued Giants Stadium LLC in 2013, claiming it was owed $100 million under the swap. Giants Stadium LLC was set up by the team’s owners, the Mara and Tisch families, to fund the construction of MetLife Stadium.

    To finance the stadium, the Giants unit issued $650 million in bonds, the bulk of which were underwritten by Lehman. The Giants entered an interest-rate swap agreement with the bank.

    Lehman offered a lower interest rate to the Giants to beat out Goldman Sachs Group Inc. for the business. But in September 2008, Lehman collapsed, causing it to default on the deal and apparently creating a loss for the Giants.

    The Giants eventually filed a $301.8 million claim against the investment bank and then sold the claim to Seth Klarman’s Baupost Group hedge fund, a firm which specializes in distressed debt investments...

    For full story:

    http://blogs.wsj.com/bankruptcy/2015/03/04/lehman-settles-lawsuit-against-n-y-giants/

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  2. Lehman Settles Bond Swap Fight Over Giants Stadium

    Mar 4, 2015 | Law360

    By Andrew Scurria

    Lehman Brothers Holdings Inc. has put to rest a lingering dispute over soured swaps deals to finance the construction of MetLife Stadium, reaching a settlement with an affiliate of the New York Giants football team that claimed it was owed $302 million on interest hedges.

    Giants Stadium LLC and the defunct financial giant consented Monday to abandon their claims against each other, resolving a long-running fight Lehman’s Chapter 11 court over interest-rate swap transactions between the two connected to $650 million in project financing bonds.

    At issue was a $302 million claim that Giants Stadium filed in the Lehman bankruptcy that dates to 2007, when the NFL team was financing the construction of its new stadium, shared with the New York Jets in New Jersey’s Meadowlands Sports Complex.

    Each party claimed that the other owed money on the swaps once Lehman’s collapse into bankruptcy triggered their termination. In October 2013, five years after entering Chapter 11, Lehman’s bankruptcy administrators hit Giants Stadium with a lawsuit seeking to expunge its proof of claim and demanding an additional $100 million over the allegedly premature terminations.

    Terms of Monday’s agreement were not disclosed, and representatives for the parties could not be immediately reached for comment.

    Giants Stadium LLC, which was created by the team’s owners during the construction of the stadium, used the swaps to hedge interest rate risks associated with its auction-rate financing bonds. Under the terms of the agreements, the Giants would pay Lehman Brothers Special Financing Inc. a fixed rate of 6.19 percent, while a Lehman subsidiary would pay the team what the bonds actually fetched at each auction.

    Things soured over a crucial question: did Giants Stadium prematurely terminate to lock in a better position? Lehman resigned as the swaps’ broker-dealer shortly after filing for bankruptcy, which Giants Stadium considered an act of default.

    The swap said that if Lehman were ever removed or replaced as broker-dealer, the floating rate would automatically switch to a market-based Libor rate. Lehman contended that the Giants wrongfully ended the swap agreements one day before Lehman was placed in liquidation proceedings — and while Lehman was still the broker-dealer — in an effort to avoid the less-favorable Libor rate.

    Giants Stadium later lodged counterclaims in the adversary proceeding claiming that LBHI and its Lehman Brothers Special Financing Inc. unit breached the swaps by failing to pay the company's claim amount...

    For full story:

    http://www.law360.com/articles/627799/lehman-settles-bond-swap-fight-over-giants-stadium

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    3. Setai Hotel

  3. $90 Million Sale of Setai Miami Beach Complete

    Mar 5, 2015 | Miami Herald

    By Hannah Sampson

    The five-star Setai Miami Beach is now owned by two iconic fashion families after the hotel’s $90 million sale closed last week.

    Nakash Holdings, controlled by the founders of jeans company Jordache Enterprises, announced it was buying the property from a subsidiary of Lehman Brothers Holdings in December. On Tuesday, the private investment company revealed that it had partners in the deal: financier Alex von Furstenberg, son of designer Diane von Furstenberg, and the family.

    “Miami has become an oasis of glamour, energy and beauty and The Setai captures it all with an international luxury experience”...

    For full story:

    http://www.miamiherald.com/news/business/article12513086.html

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    4. Full Text of Stories Below

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