Bankruptcy

Lehman takes aim at guarantee claims

Lehman Brothers Holding Inc (LBHI) confirmed yesterday in its bankruptcy disclosure statement that there are doubts over the validity of third-party and affiliate guarantee claims that cite a pledge by the holding company to take on its subsidiaries'…

The Lehman flip clause flap

The decision of a US bankruptcy court to void contractual provisions that shield investors from the credit risk of swap counterparties in structured finance deals has put the legal systems of England and the US on a collision course. It also has…

Dubai: The legal issues highlighted by the crisis

Dubai World’s emergency debt restructure last year and the continuing debate over the integrity of sukuk products have rocked investor confidence in the Dubai International Financial Centre. Tricky structural work is needed to strengthen its legal…

Winding down Lehman

In an exclusive interview with Risk, the administrators of Lehman Brothers International (Europe) discuss their role in handling the largest bankruptcy in corporate history, revealing how the process has raised questions about prime brokerage agreements,…

Ultimate recoveries

Measuring recovery using the ultimate rate observed at emergence from bankruptcy may be conceptually desirable, but modelling it is difficult. Craig Friedman and Sven Sandow tackle the problem by maximising the creditor’s utility function, constructed…

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