Lehman Unit Sues CDS Partner To Recover $46M

Law360, New York (April 27, 2009, 12:00 AM EDT) -- In its latest suit against one of its former credit default swap partners, Lehman Brothers Special Financing Inc. has accused Metropolitan West Asset Management LLC of illegally withholding $46 million from the specialty unit in order to offset an unrelated claim against Lehman's bankrupt parent company.

The adversary complaint, filed Friday in the U.S. Bankruptcy Court for the Southern District of New York, argues that MetWest, along with one of its funds, has "repeatedly acknowledged ... both orally and in writing" that it owes LBSF $146...
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