Lehman Balks At Freddie's Bid For $1B Claim Priority

Law360, New York (September 16, 2013, 8:05 PM EDT) -- Lehman Brothers Holdings Inc. urged a New York bankruptcy judge Friday to reject the Federal Home Loan Mortgage Corp.’s bid for its $1.2 billion claim over unpaid loans to be given priority status, arguing the claim doesn’t qualify for preferred treatment under the Bankruptcy Code.

Freddie Mac contended that its claim for Lehman’s failure to repay two short-term unsecured loans should be entitled to “priority recovery” under Lehman’s confirmed plan of reorganization, but Lehman said although the Housing and Recovery Act of 2008 may give Freddie...
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