The aim of the motion is stated to 'promote efficiency and maximise value for the Debtors' estates.' Bankruptcy proceedings include a 'safe harbour' provision which allows holders of derivative contracts to terminate them if the issuer has filed a chapter 11 case. However, some holders have still not unwound contracts, which the courts think is due to those trades currently resulting in losses.
The courts are pressing investors to settle these contracts so that the value of the Lehman estate can
The week on Risk.net, July 7-13, 2018Receive this by email