The International Swaps and Derivatives Association, Inc. (“ISDA”) is preparing forms of amendment to its boilerplate master agreements in connection with market practice relating to the suspension of payments by a non-defaulting party. ISDA is also considering a protocol to implement the amendments into existing agreements on a multilateral basis.
USA, Derivatives, Insolvency & Restructuring, Orrick, Herrington & Sutcliffe LLP, Bankruptcy, Condition precedent, Waiver, Swap (finance), Default (finance), International Swaps and Derivatives Association, Lehman Brothers, High Court of Justice (England & Wales), United States bankruptcy court
On May 5, 2010, the United States Bankruptcy Court for the Southern District of New York issued a decision declaring that a party’s right to setoff in an ISDA Master Agreement is unenforceable in bankruptcy unless strict mutuality exists. (Decision and Order).
USA, New York, Derivatives, Insolvency & Restructuring, Litigation, Orrick, Herrington & Sutcliffe LLP, Bankruptcy, Debtor, Safe harbor (law), Debt, Default (finance), International Swaps and Derivatives Association, Lehman Brothers, Title 11 of the US Code, United States bankruptcy court, US District Court for District of Delaware