Lehman Brothers Court Holds Triangular Setoff Provisions Unenforceable in Bankruptcy

On October 4, 2011, the United States Bankruptcy Court for the Southern District of New York held that Section 553(a) of the Bankruptcy Code renders unenforceable cross-affiliate netting or “triangular” (non-mutual) setoff provisions to the extent they cover non-mutual debts between the debtor and entities affiliated with the creditor.

To read the full article

Continue reading your article with a HFLR subscription.