Lehman Bankruptcy Court Denies Contractual Right to Triangular Setoff | White & Case LLP International Law Firm, Global Law Practice
Lehman Bankruptcy Court Denies Contractual Right to Triangular Setoff

Lehman Bankruptcy Court Denies Contractual Right to Triangular Setoff

Reprinted with permission from the February 2012 issue of Futures & Derivatives Law Report.

In the recent Lehman Brothers Inc. SIPA proceeding, Judge James Peck of the Bankruptcy Court for the Southern District of New York denied UBS AG's assertion of a triangular setoff right, despite the undisputed underlying contractual right of triangular setoff in the swap agreement between the parties, closing the door for triangular setoff in a bankruptcy under the Bankruptcy Code.

 

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