Derivatives in Bankruptcy: Latest Lessons From Lehman
Minimizing Risks When a Counterparty Becomes Insolvent
Recent Lehman decision finds "flip clause" violates ipso facto provisions
Recording of a 90-minute CLE webinar with Q&A
This CLE course will provide bankruptcy attorneys with a solid understanding of the safe-harbor provisions of the bankruptcy code for derivatives contracts and analyze the lessons from the Lehman bankruptcy cases. The panel will outline best practices to minimize risk when a significant counterparty become insolvent.
- Safe harbor provisions of bankruptcy code for derivatives
- Code definitions of derivatives and counterparties
- Safe harbor protections
- Limitations on safe harbor protections
- Reducing counterparty risk
- Analyze trading agreements and documentation
- ISDA master agreements
- Recent developments in the Lehman bankruptcy cases: LBHI v. Metavante; LBSF v. BNY; Perpetual Trustee v. BNY (England Court of Appeals)
- Legislative and regulatory developments
- Impact of legislative proposals on counterparty risk
- CFTC treatment of cleared OTC products
The panel will review these and other key questions:
- When does a default event under the trading documents constitute a credit event under the Bankruptcy Code?
- How are ipso facto and bankruptcy clauses relevant to the safe-harbor protections of the Code?
- What are the limitations on the safe-harbor rules?
Willa Cohen Bruckner
Alston & Bird
She concentrates on derivatives, structured products, and alternative investments and has over 35 years of experience... | Read More
She concentrates on derivatives, structured products, and alternative investments and has over 35 years of experience as a financial services attorney.Close
William S. Sugden
Alston & Bird
He represents debtors, bankruptcy trustees, creditors’ committees and other fiduciaries, as well as creditors and... | Read More
He represents debtors, bankruptcy trustees, creditors’ committees and other fiduciaries, as well as creditors and indenture trustees in bankruptcy proceedings. He currently represents creditors, trustees and other counterparties in the Lehman Brothers bankruptcy and SIPC proceedings.Close