It was found through a court document that Lehman Brothers Holdings Inc had filed a case against Giants Stadium LLC over swap contracts the latter cancelled. Lehman intended to recover over USD100 million worth of value from two interest-rate swap contracts Giants Stadium cancelled in September 2008.
The lawsuit apparently sprung from a disagreement over the amount of the settlement of the swap contracts after Lehman's bankruptcy filing. The securities were used to hedge risks on interest rates on bonds worth USD650 million that was issued by Giants Stadium. Lehman claimed that Giants Stadium launched measures to ensure that the latter would not be paying millions of dollars.
The filing said the termination of the swap contracts resulted to Lehman owing Giants Stadium USD301 million. Later on, hedge fund Baupost Group LLC bought Giants Stadium's claim against the estate of the investment bank and amended the valuation of the claims to USD585 million per cancelled contract.
Lehman said its proper calculation of the damages would be not less than USD94 million plus interest for both securities.
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