Lehman Court At Odds With Itself Over Swap Safe Harbor

Law360, New York (January 16, 2014, 12:48 AM EST) -- In Michigan State Housing Development Authority v. Lehman Brothers Derivatives Products Inc., et al. (In re Lehman Brothers Holdings Inc. et al.) (Michigan State Housing),[1] the U.S. Bankruptcy Court for the Southern District of New York recently held that a provision in a swap agreement that shifted the methodology for calculating termination amounts upon the debtor counterparty's bankruptcy was enforceable under the Bankruptcy Code's safe harbor for liquidating, terminating and accelerating swap agreements....

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