Lehman Brothers Financial SA (LEHNQ)

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COURT OF APPEAL AFFIRMS DISTRICT COURT JUDGEMENT
(No more case) LBHI Lost the appeal.


Lehman Brothers Special Financing Inc. (“LBSF”) appeals from the March 15, 2018 district court judgment affirming the Bankruptcy Court’s grant of defendants’

The Bankruptcy Court held that, in the context of synthetic collateralized debt obligations, certain “Priority Provisions” that subordinated LBSF’s payment priority to claims of the Noteholder defendants are enforceable by virtue of section 560

Section 560 exempts “swap agreements” from the Code’s prohibition of “ipso facto clauses.” The District Court affirmed, and LBSF appealed.

For the reasons set forth below, we AFFIRM the judgment of the District Court.

AFFIRMED.