Lehman Brothers Inc Sue Intel Corp Over $1 Billion In Seized Collateral-Reuters

Thursday, 2 May 2013 01:09am EDT 

Reuters reported that Lehman Brothers Inc has sued Intel Corp accusing the chip maker of seizing $1 billion in collateral in breach of a swap agreement. 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. 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. 

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