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Bank of New York Mellon to appeal US court's Dante ruling
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Banks Bank Of New York Mellon Corp Lehman Brothers Holdings Inc
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http://www.marketwatch.com/story/bank-of-new-york-mellon-to-appeal-us-courts-dante-ruling-2010-02-02

By Mark Brown

LONDON (MarketWatch) -- Bank of New York Mellon Corp. /quotes/comstock/13*!bk/quotes/nls/bk (BK 29.58, +0.49, +1.68%) said Tuesday it will appeal the recent ruling by the U.S. Bankruptcy Court in Manhattan on a structured debt program called Dante, to which Lehman Brothers Holdings Inc. /quotes/comstock/11i!lehmq (LEHMQ 0.08, +0.00, +3.80%) was a counterparty.

Judge James Peck granted summary judgment to Lehman Jan. 25, ruling that a contract in question violates U.S. bankruptcy law. The contract allows investors in bonds issued under the Dante program to move ahead of the bank to grab assets backing the bonds.

"As a result of the conflicting court decisions in the U.S. and U.K. regarding the Lehman-sponsored Dante bond program, BNY Mellon, in its role as trustee, will appeal the recent ruling by the U.S. Bankruptcy Court," Bank of New York Mellon said in a statement.

"The U.S. court's ruling is likely to have implications beyond this specific case and we are hopeful the appeal will help clarify the issue."