Replies to post #2919 on Lehman Preferred Series "J" Preferred (f

[RICK C]

These 4 Paragraphs taken from the PDF FILE say a lot. I believe it says it in OUR FAVOR.JMO looking for thoughts from others. -
------------------------------------------------------------- # 1-"Judge James Peck ordered Metavante Corporation (“Metavante”), a counterparty to Lehman Brothers Special Financing (“LBSF”) in an interest rate swap transaction in which Lehman Brothers Holdings, Inc. (“LBHI”) is the credit support provider, to perform its obligations to pay quarterly fixed amounts owing under the transaction, notwithstanding the bankruptcies of LBSF and its parent.
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# 2-"Judge Peck concluded that Metavante could not rely solely on the filing of the Lehman bankruptcy cases to refuse to make payment to Lehman while also not terminating the agreement"
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# 3- " Judge Peck found that:
• the swap agreement is “in fact, a garden variety executory contract, one for which there remains something still to be done on both sides,” and as such is “enforceable by a debtor against the counterparty;”
# 4- "--------------------------------------------------
Who is “in the money” and who is “out of the money”?
As noted earlier, the timely settlement and liquidation of outstanding derivatives transactions constitute one of the primary objectives of the Lehman bankruptcy estates. By Lehman’s own count, as of June 2009, there were still hundreds of outstanding swaps and other derivatives contracts in which Lehman was “in the money” (i.e., it would be owed a payment upon early termination rather than being required to make one).