Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers L > Headlines for Lehman Brothers Holdings Inc. > News item |
Lehman granted approval of Millennium swap, partnership settlement
By Caroline Salls
Pittsburgh, May 18 - Lehman Brothers Holdings Inc. debtor Lehman Brothers Special Financing Inc. received court approval of a swap and partnership agreement settlement with Millennium Management, LLC, Millennium Partners, LP and Millennium USA, LP, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
Under a partnership agreement with Millennium, Lehman Brothers Special Financing made a capital contribution and became a limited partner on April 28, 2008.
The Lehman affiliate withdrew its capital account and withdrew as a limited partner in Millennium on Dec. 30, 2008.
However, the Millennium entities did not fulfill the withdrawal request. Instead, Millennium advised Lehman Brothers Special Financing that, although the balance in its capital account was more than $95 million, Millennium USA would withhold this amount as an exercise of a setoff of sums allegedly owed in relation to swap transactions.
According to the motion, Millennium Partners delivered a notice of default to the Lehman affiliate. On Nov. 4, 2008, Millennium said Lehman Brothers Special Financing owed $15.89 million, as well as $238,000 in interest, fees and expenses as a result of early termination of the swap transactions.
Lehman Brothers Special Financing subsequently filed a lawsuit on Jan. 15 asking the court to declare the proposed setoff unlawful and seeking immediate return of the capital account.
Under the settlement, Millennium USA will pay Lehman Brothers Special Financing $99 million.
In addition, Lehman Brothers Special Financing and Lehman Brothers Holdings have agreed to grant Millennium Partners $8 million unsecured claims against each.
New York-based Lehman Brothers Holdings Inc. was 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.