Lehman Loses UK Suit Over $4M In Swap Payments

Law360, New York (March 28, 2011, 6:19 PM EDT) -- A London court ruled Monday that British media company Carlton Communications Ltd. is not obligated to pay a Lehman Brothers Holdings Inc. subsidiary £2.6 million ($4.25 million) in interest rate swap payments following the bank’s September 2008 collapse.

Justice Michael T. Briggs of the High Court of Justice, Chancery Division, concluded that Carlton is not bound to provide payment under the interest rate swap transactions for the betterment of Lehman’s creditors or otherwise required to honor the swaps given Lehman's defaults.

Lehman Brothers Special Financing Inc.,...
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