Chicago Ed. Board Wants Out Of Lehman Swap Deal

Law360, New York (August 28, 2009, 1:34 PM EDT) -- The Chicago Board of Education is seeking declaratory judgment releasing it from $1.13 million in interest swap payments demanded by Lehman Brothers Special Financing Inc.

The board filed the adversary case Tuesday in the U.S. Bankruptcy Court for the Southern District of New York, alleging that the Ch. 11 filing of LBSF's parent company, Lehman Brothers Holdings Inc., constituted a default on the swap agreement, thereby releasing the board from its obligation to continue making semiannual payments.

The board and LBSF established a swap agreement in...
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