Lehman Blasts SunCal For Ignoring Automatic Stay

Law360, New York (May 25, 2011, 5:58 PM EDT) -- Lehman Brothers Holdings Inc. asked a New York bankruptcy court on Tuesday to enforce an automatic stay and block California real estate developer SunCal from contesting some $1.5 billion in Lehman claims.

Lehman, which provided debt financing to bankrupt SunCal, said the developer is playing “Russian roulette” by flouting the court’s order. In October, the New York bankruptcy court issued a stay in the case of Lehman’s commercial paper unit, but SunCal has continued to pursue an order disallowing 14 of Lehman's claims, which total roughly...
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