AIG CDS, Lehman Fight Over Big-Dollar Swap Contract

Law360, New York (October 6, 2009, 12:22 PM EDT) -- The derivatives trading subsidiary of American International Group Inc. told a bankruptcy judge Tuesday that Lehman Brothers Special Financing Inc. did not meet its obligation to make premium payments to the unit, in a fight over who owes whom under a credit default swap contract.

AIG CDS Inc.'s objection, filed in the U.S. Bankruptcy Court for the Southern District of New York, comes in response to Lehman's Aug. 7 motion seeking an order compelling the insurer to pony up more than $9 million.

But AIG CDS...
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