Norton Settles Lehman Gold Hedge Dispute For $93M

Law360, New York (July 19, 2010, 5:34 PM EDT) -- Australian gold producer Norton Gold Fields Ltd. has agreed to provide bankrupt Lehman Brothers Holdings Inc. with more than $93 million in cash and IOUs to settle obligations under a derivative contract that placed a losing bet on gold prices.

Norton announced Monday that it will pay Lehman Brothers Commercial Corp. $8.7 million (AU$10 million) up front and issue the bankrupt affiliate an $84.3 million (AU$97 million) senior secured note due in four years.

Interest on the note will be calculated at an annual rate of...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.