Lehman Brothers objects to Nomura proofs of claims, seeks damages

By Lisa Kerner

Charlotte, N.C., April 23 - Lehman Brothers Holdings Inc., Lehman Brothers Special Financing Inc., and affiliated debtors are seeking damages from proofs of claims filed by Nomura International plc, according to a pair of motions filed on Friday with the U.S. Bankruptcy Court for the Southern District of New York.

Both actions seek "redress against Nomura for its egregious inflation by hundreds of millions of dollars of the proofs of claim that Nomura filed under penalty of perjury" against Lehman.

Lehman believes Nomura's claims have no basis in law and that Nomura is "not entitled to a single cent from the debtors, but instead it is Nomura that owes the debtors tens of millions of dollars," the filings said.

The one filing refers to Nomura's proofs of claim, numbers 17198 and 17199, demanding over $720 million from debtors under a terminated ISDA master agreement.

The second filing refers to Nomura's proofs of claim, numbers 17202 and 17203, demanding over $40 million from debtors also under a terminated ISDA master agreement.

Lehman is asking that the court sustain the debtors' objection to the Nomura claims and disallow and expunge the claims in their entirety.

In addition, Lehman wants the court to determine that Nomura has breached swap agreement and owes Lehman Brothers Special Financing damages in an amount to be determined at trial.

Lehman also asked the court to award declaratory judgment in favor of the debtors, including a declaration of the parties' rights and obligations under the swap agreements, according to the filings.

New York-based Lehman Brothers Holdings is the fourth largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008. Its Chapter 11 case number is 08-13555.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.