Lehman Makes Deal With German Bank Over €139M

A German bank has struck a deal with bankrupt Lehman Brothers Holdings Inc. regarding the exercise and liquidation of currency options contracts nominally worth €139 million, Bankruptcy Law360 reported. According to Judge James M. Peck's order Monday in the the U.S. Bankruptcy Court for the Southern District of New York, if Deutsche Zentral-Genossenschaftsbank AG exercises a currency option, the transaction will be deemed liquidated at the current market value. According to the order, the bank will have until the bar date established in the bankruptcy case to file any proof of claim in respect to such liquidation. According to court documents, the deal involves five separate currency options with a total nominal value of €139 million ($192 million). The parties to the agreement could not immediately be contacted for comment on Tuesday. DZ Bank is the fifth-largest bank in Germany and acts as a central banker for approximately 1,000 cooperative banks. Read more. (Subscription required.)