Lehman Unit Sues MetWest Over $17M Setoff

Law360, New York (May 18, 2009, 12:00 AM EDT) -- A bankrupt subsidiary of Lehman Brothers Holdings Inc. has filed a $17 million adversary lawsuit against Metropolitan West Asset Management LLC, claiming the defendant failed to pay its obligations under a swap deal.

Lehman Brothers Special Financing Inc.'s lawsuit, filed Friday in the U.S. Bankruptcy Court for the Southern District of New York, says the defendants have paid about $22 million under the terms of a 2004 agreement but, despite acknowledging the debtor's entitlement to the remaining money, have withheld payment.

The basis for withholding the...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.