Lehman to Pay ‘Saphir’ Derivatives Investors A$98.5 Million
This article is for subscribers only.
Lehman Brothers Holdings Inc. will pay investors A$98.5 million ($104 million) to settle a derivatives dispute that divided courts in the U.S. and the U.K., according to an Australian trustee who sued on behalf of investors.
Lehman agreed to pay holders of credit-linked notes issued by Mahogany Capital Ltd. as much as 85 cents on each dollar invested in Series I notes that were backed by an Australia and New Zealand Banking Group Ltd. bond and as much as 69 cents on the dollar for a Series II note backed by a Royal Bank of Scotland Group Plc bond, said Chris Green, group executive at Perpetual Corporate Trust in Sydney.