On September 15, 2009, the United States Bankruptcy Court of the Southern District of New York ordered Metavante Corporation (“Metavante”) to make payments to Lehman Brothers Special Financing Inc. (“LBSF”) under a prepetition interest rate swap agreement guaranteed by Lehman Brothers Holdings Inc. (“LBHI” and, together with LBSF, “Lehman”) after Metavante had suspended ordinary course settlement payments under the swap.1 Metavante claimed a contractual right to withhold payment under Section 2(a)(iii) of the 1992 ISDA Master Agreement as a result of Lehman’s bankruptcy.
USA, Derivatives, Insolvency & Restructuring, Litigation, White & Case, Bankruptcy, Condition precedent, Libor, Debtor, Safe harbor (law), Interest, Swap (finance), Concession (contract), Default (finance), Lehman Brothers, Title 11 of the US Code, United States bankruptcy court