Capital Auto Fights Lehman Over $20M Swap Deal

Law360, New York (December 1, 2009, 4:02 PM EST) -- Capital Automotive LP has objected to efforts by bankrupt Lehman Brothers Special Financing Inc. to force the auto dealership financing company to pay nearly $20 million to settle an interest rate swap contract, contending that Lehman defaulted on the deal and abandoned its obligations.

Capital Auto filed its objection Monday in the U.S. Bankruptcy Court for the Southern District of New York, claiming that it has rightfully withheld payments on the basis of a number of events of default by Lehman, including previously ceasing communications with...
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