Structured finance transactions frequently subordinate a swap counterparty’s rights to termination payments upon termination of a swap by reason of counterparty default. Such a provision has recently been upheld by an English court. As the case concerns the insolvency of Lehman Brothers however, the US courts must also make a decision on the same provision.
Filed under:
United Kingdom, USA, Derivatives, Insolvency & Restructuring, Litigation, Securitization & Structured Finance, McDermott Will & Emery, Bankruptcy, Collateral (finance), Security (finance), Swap (finance), Debt, Default (finance), Yield (finance), Lehman Brothers, High Court of Justice (England & Wales)
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