- 11 U.S.C.
Lehman Bros. Special Fin. Inc. v. BNY Corporate Tr. Servs. (In re Lehman Bros. Holdings Inc.)
Jan
25
2010
Ruling
Swap agreement provision calling for shift in debtor's priority in event of default was an unenforceable ipso facto clause.
Procedural posture
Plaintiff bankruptcy debtor brought an adversary proceeding against defendant trustee of a multi-issuer secured obligation program which held collateral for the benefit of a note-holder and the debtor as a counter-party under swap agreements, seeking a declaration that the debtor's priority in the collateral did not transfer to the note-holder due to the bankruptcy of the debtor's parent corporation. The debtor moved for summary judgment.
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Court
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