Provisions in Lehman Brothers Collateralized Debt Obligations Setting Payment Priority Are Enforceable and Protected by Safe Harbor By Carmine D. Boccuzzi, Jr. and Jeffrey A. Rosenthal (PDF)
In the bankruptcy of Lehman Brothers Special Financing Inc., the U.S. Bankruptcy Court for the Southern District of New York recently held that market-standard provisions in structured finance transactions that set the priority of payment for swap termination payments to swap counterparties in the event of a swap counterparty default are enforceable when the default is due to the filing of a bankruptcy.
Carmine D. Boccuzzi, Jr., is a partner at Cleary Gottlieb Steen & Hamilton LLP, where he focuses his litigation and arbitration practice on a broad range of complex civil litigation matters. He represents clients in international disputes, including those involving foreign states and state-owned entities, and in domestic disputes involving the capital markets and antitrust issues. Mr. Boccuzzi received his J.D. from Yale Law School and his B.A. from Yale University. He may be reached at firstname.lastname@example.org.
Jeffrey A. Rosenthal, a partner at Cleary Gottlieb Steen & Hamilton LLP, focuses his practice on general commercial and international arbitration and litigation, as well as sports law. He has tried or arbitrated cases concerning international joint venture disputes, intellectual property, sports contract disputes, maritime issues, bankruptcy, breaches of contract, insurance law, bilateral investment treaty disputes, and tort law. Mr. Rosenthal has also been appointed to serve as an arbitrator in connection with proceedings involving the Ladies Professional Golf Association and a National Basketball Association club. He received his J.D., magna cum laude, from Harvard Law School and his A.B., cum laude, from Dartmouth College. He may be reached at email@example.com.
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