Michigan State Housing Development Authority Releases Statement on Recent U.S. Bankruptcy Court Decision Upholding Swap Provision in Lehman Brothers Holdings Inc. Case

Dec 27, 2013, 11:44 ET from Michigan State Housing Development Authority

LANSING, Mich., Dec. 27, 2013 /PRNewswire-USNewswire/ -- The Michigan State Housing Development Authority today issued the following statement regarding the recent court decision in the Lehman Brothers Holdings Inc. Et Al vs. MSHDA case presently being litigated in the United States Bankruptcy Court for the Southern District of New York:

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"We are pleased with the conclusions reached by the bankruptcy court and look forward to resolving the remaining few issues with Lehman," stated Scott Woosley, executive director of the Michigan State Housing Development Authority (MSHDA).

In his decision to grant MSHDA partial summary judgment, U.S. Bankruptcy Judge James M. Peck held, as MSHDA has maintained throughout the dispute, that the Bankruptcy Code's "safe harbor" provisions apply to the procedures MSHDA followed in closing out various interest rate swap agreements it had entered with Lehman Brothers. "I especially want to acknowledge the work of several MSHDA staff members, including Jeff Sykes, Director of Finance, Clarence Stone, Director of Legal Affairs and Chris LaGrand, Chief Housing Investment Officer," Woosley said. "I also greatly appreciate the advice of the Special Assistant Attorney Generals of the WilmerHale law firm and the Michigan Department of Attorney General. Their collective understanding of not only a complex financial tool but also the labyrinth of the bankruptcy law was instrumental in resolving this case." 

The bankruptcy court's decision validates the position to which MSHDA has adhered since the onset of the dispute between the parties. Namely, MSHDA believes that following Lehman's bankruptcy, it properly calculated the settlement amount and made appropriate payments to the Lehman parties.

Read the full decision at http://www.nysb.uscourts.gov/sites/default/files/opinions/188162_61_opinion.pdf

SOURCE Michigan State Housing Development Authority