Flip clause ruling nets Lehman estate $3 billion
The US judge who voided the flip clauses in Lehman CLNs says the failed bank's estate has used the ruling to recoup $3 billion from creditors. But he warns that legal uncertainty about the decision remains
The judge who presided in the landmark Lehman Brothers bankruptcy case – and ruled that a controversial clause in credit derivatives contracts that would have given creditors priority in termination payments was invalid – says the use of his ruling in non-public mediations has allowed the bank's estate to recoup $3 billion from creditors.
"Hundreds of mediations have taken place [with] Lehman. I am not privy to what happened in those mediations, but I am privy to the results of those mediations
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