Lehman Court Ruling in Metavante Matter Expected to Complicate Withholding Payments Under Derivatives Contracts | Practical Law

Lehman Court Ruling in Metavante Matter Expected to Complicate Withholding Payments Under Derivatives Contracts | Practical Law

An update on a ruling in the Lehman Brothers bankruptcy case interpreting Section 2(a)(iii) of the ISDA Master Agreement. The ruling is expected to make it more difficult for companies to keep derivatives contracts with bankrupt or insolvent counterparties open without making payments under those contracts, as permitted under that section.

Lehman Court Ruling in Metavante Matter Expected to Complicate Withholding Payments Under Derivatives Contracts

by PLC Finance
Published on 25 Sep 2009USA (National/Federal)
An update on a ruling in the Lehman Brothers bankruptcy case interpreting Section 2(a)(iii) of the ISDA Master Agreement. The ruling is expected to make it more difficult for companies to keep derivatives contracts with bankrupt or insolvent counterparties open without making payments under those contracts, as permitted under that section.