Lehman, Merrill Reach Deal In Mortgage Bond Face-Off

Law360, New York (December 22, 2011, 8:51 PM EST) -- Bankrupt Lehman Brothers Holdings Inc. and two Merrill Lynch & Co. units on Wednesday settled a dispute over their interests in $105 million in bonds secured by mortgages that have gone into default.

LBHI, Lehman Brothers Special Financing Inc., Merrill Lynch Portfolio Management Inc. and Merrill Lynch Capital Services Inc. asked the U.S. Bankruptcy Court for the Southern District of New York to sign off on the deal that would end adversary litigation between the parties in Lehman’s bankruptcy.

The dispute stems from $62 million in...
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