Property Group Needs Relief From Lehman Stay: 9th Circ.

Law360, New York (August 3, 2011, 7:06 PM EDT) -- The Ninth Circuit on Wednesday affirmed a ruling that a bankrupt real estate group seeking to subordinate a Lehman Brothers Holdings Inc. unit's claims must obtain relief from Lehman's automatic stay in New York, where its bankruptcy proceedings are being held.

A bankruptcy appellate panel for the Ninth Circuit had ruled that Palmdale Hills Property LLC's bid in a California bankruptcy court to subordinate Lehman Commercial Paper Inc.'s claims was an affirmative action that violated an automatic stay initiated for the financial firm's own bankruptcy proceedings....
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