Posted by: youngragingbull | May 2, 2013

Lehman Brothers sues Intel over $1B swap agreement

Failed investment bank Lehman Brothers has sued Intel, saying the chipmaker has broken a $1 billion swap deal, according to media reports.

Under the 2008 agreement, Intel gave a Lehman’s derivatives unit $1 billion in exchange for 50.5 million shares, the bank said in a New York bankruptcy court filing cited by Reuters. In return, Lehman put up $1 billion in cash collateral.

Intel seized the collateral two weeks after Lehman filed for bankruptcy on September 15, 2008, and has since refused to return it, the bank said.

Lehman is looking to recover an unspecified amount for the alleged breach of agreement.

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Responses

  1. Intel is such a healthy company why will it reverse on a swap deal?

  2. Only Intel execs know


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