On September 20, the United States District Court for the Southern District of New York granted BNY Corporate Trustee Services Limited leave to appeal the bankruptcy court’s decision in the Lehman “Dante” matter. In its January decision, the bankruptcy court had voided certain document provisions providing for the subordination of a swap counterparty’s rights to an early termination payment when the swap counterparty or one of its close affiliates went into bankruptcy. Court Decision.

To view Orrick’s Client Memo on the January Dante decision, click here.