safe harbored swap agreement

Lehman Court Finds Safe Harbors Protect Damage Calculation Provisions in Swap

Judge James M. Peck issued a significant opinion in the Lehman Brothers bankruptcy late last month, which preserved important safe harbored rights.  The opinion protects a non-debtor counterparty’s right to rely on a contractually agreed methodology for calculating damages upon the liquidation of a safe harbored swap agreement—even if the debtor’s bankruptcy triggers the provision.  To read the complete Orrick alert, please click here.