Lehman sues in to recover credit swap payments lost as a result of bankruptcy filingBy David Pitt, AP
Wednesday, September 15, 2010
Lehman sues to recover credit swap payments
DES MOINES, Iowa — Lehman Brothers Holdings Inc. is trying to recover more than $3 billion from banks, insurers and other financial services companies.
It claims it lost the money when its bankruptcy filing in 2008 caused its priority payment status to be modified.
Lehman, in a filing Tuesday, claims it should have been paid ahead of noteholders who were party to 43 collateralized debt obligation deals.
The largest of the CDO deals involved Toronto-based Canadian Imperial Bank of Commerce, which Lehman alleges owes it $1.3 billion. Canadian Imperial said Wednesday it continues to believe previous decisions releasing the bank of any financial obligation to Lehman should be upheld by the court.