{{Bankrupt investment bank Lehman Brothers has sued Intel Corp, accusing the chip maker of seizing $1 billion in collateral in breach of a swap agreement, a court filing showed.}}<\/p>\n
Under the swap agreement, executed days before Lehman filed for bankruptcy in 2008, Intel gave $1 billion to a derivatives unit of Lehman Brothers in exchange for 50.5 million Intel shares, to be delivered on the settlement date of September 29, 2008, according to the filing made in a New York bankruptcy court.<\/p>\n
The unit, Lehman Brothers OTC Derivatives Inc (LOTC), posted $1 billion in cash collateral to Intel also as part of the agreement. The agreement specified that Intel would be compensated for losses in case of early termination of the deal.<\/p>\n
According to the filing, Intel maintained that Lehman was to deliver “$1 billion in Intel common stock,” but Lehman argued that the agreement was to deliver 50.5 million of Intel shares irrespective of the dollar value.<\/p>\n
“The value of 50,552,943 shares of Intel common stock on September 29, 2008 was about $873 million, not $1 billion,” Lehman said.<\/p>\n
Intel terminated the agreement two weeks after the company’s bankruptcy filing on September 15, 2008, and seized the entire $1 billion in collateral and has not returned it, Lehman said in the filing.<\/p>\n
By seizing the collateral in its entirety, Lehman said “Intel breached the swap agreement.”<\/p>\n
Lehman is looking to recover from Intel an unspecified amount to be determined at trial.<\/p>\n
Intel could not immediately be reached for comment by Reuters outside of regular U.S. business hours.<\/p>\n
Lehman filed the largest-ever U.S. bankruptcy on September 15, 2008, with $639 billion in assets. It is in the midst of repaying about $65 billion to creditors under a liquidation plan approved in late 2011.<\/p>\n
The case is in re Lehman Brothers Holdings Inc et al vs Intel Corp, Case No. 13-01340, U.S. Bankruptcy Court, Southern District of New York.<\/p>\n","protected":false},"excerpt":{"rendered":"
{{Bankrupt investment bank Lehman Brothers has sued Intel Corp, accusing the chip maker of seizing $1 billion in collateral in breach of a swap agreement, a court filing showed.}} Under the swap agreement, executed days before Lehman filed for bankruptcy in 2008, Intel gave $1 billion to a derivatives unit of Lehman Brothers in exchange […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[101],"byline":[170],"hashtag":[],"class_list":["post-7547","post","type-post","status-publish","format-standard","hentry","category-business","tag-internationl","byline-igihe"],"bylines":[{"id":170,"name":"IGIHE","slug":"igihe","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":8}],"contributors":[{"id":170,"name":"IGIHE","slug":"igihe","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":8}],"featured_image":null,"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/7547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=7547"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/7547\/revisions"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=7547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=7547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=7547"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=7547"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=7547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}