Lehman Court Holds Triangular Setoff Provisions Unenforceable in Bankruptcy | Practical Law

Lehman Court Holds Triangular Setoff Provisions Unenforceable in Bankruptcy | Practical Law

On October 4, 2011, the US Bankruptcy Court for the Southern District of New York issued an opinion in the Lehman Brothers bankruptcy cases holding that cross-affiliate netting provisions are unenforceable in bankruptcy to the extent they cover non-mutual debts.

Lehman Court Holds Triangular Setoff Provisions Unenforceable in Bankruptcy

Practical Law Legal Update 3-508-9849 (Approx. 5 pages)

Lehman Court Holds Triangular Setoff Provisions Unenforceable in Bankruptcy

by PLC Finance and Practical Law Bankruptcy & Restructuring
Published on 13 Oct 2011 • USA (National/Federal)
On October 4, 2011, the US Bankruptcy Court for the Southern District of New York issued an opinion in the Lehman Brothers bankruptcy cases holding that cross-affiliate netting provisions are unenforceable in bankruptcy to the extent they cover non-mutual debts.