Lehman Takes Aim At BNY Mellon Over Derivatives Deal

Law360, New York (October 19, 2011, 10:17 PM EDT) -- Lehman Brothers Special Financing Inc. hit BNY Mellon Corporate Trustee Services Ltd. with an adversary suit Tuesday, claiming the failed bank was deprived of property interest as a result of allegedly illegal provisions in a derivatives transaction agreement.

Lehman is seeking a judgment declaring that it is entitled to senior payment priority for the assets backing the deal and that the provisions violate its automatic stay and are unenforceable under federal bankruptcy law.

According to Lehman's complaint, the bank was a counterparty to a swap agreement with Cayman Islands-based Topaz Finance Ltd., which issued a collateralized debt obligation with an initial...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS