Lehman Sues St. Louis University Over Swap Deal: Bankruptcy
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(Bloomberg) -- Lehman Brothers Holdings Inc., now filinglawsuits and collecting assets for the benefit of creditors,isn’t giving a free pass to non-profits like colleges who don’tpay up for early terminations of interest-rate swaps in whichthe former investment bank was “in the money.”
Lehman filed suit on Dec. 23 against Saint LouisUniversity, the counter party on five interest-rate swaps at thestart of Lehman’s bankruptcy in 2008. According to Lehman, theuniversity terminated the swaps early and paid Lehman about $25million.