Norton Settles Lehman Gold Hedge Dispute For $93M

Law360, New York (July 19, 2010, 5:34 PM EDT) -- Australian gold producer Norton Gold Fields Ltd. has agreed to provide bankrupt Lehman Brothers Holdings Inc. with more than $93 million in cash and IOUs to settle obligations under a derivative contract that placed a losing bet on gold prices.

Norton announced Monday that it will pay Lehman Brothers Commercial Corp. $8.7 million (AU$10 million) up front and issue the bankrupt affiliate an $84.3 million (AU$97 million) senior secured note due in four years.

Interest on the note will be calculated at an annual rate of...
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