Lehman Sues BofA, Barclays Over $150M Liquidation

Law360, New York (November 30, 2010, 1:04 PM EST) -- A Lehman Brothers Holdings Inc. unit has asked a bankruptcy judge to stop Bank of America Corp. and Barclays PLC from liquidating a collateralized debt obligation, claiming the $150 million in collateral belongs to creditors.

In an adversary complaint filed Monday in the U.S. Bankruptcy Court for the Southern District of New York, Lehman Brothers Special Financing Inc. argues that it has a right to a priority payment from the CDO.

Lehman is a party to derivative swaps related to the Ceago ABS CDO 2007-1, while...
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