When One Party To A Swap Agreement Goes Bankrupt

Law360, New York (September 30, 2008, 12:00 AM EDT) -- On Monday, Sept. 15, 2008, Lehman Brothers Holdings Inc. filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York. At this point, only Lehman has filed for bankruptcy, while its U.S. subsidiaries have not.

For companies that have entered into a swap agreement with any Lehman entity, however, it is important to be aware of the consequences of the Lehman bankruptcy and generally the bankruptcy of any party to a swap agreement. As used in this guest...
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