Lehman Brothers Holdings Inc.'s U.K. unit won its appeal over the interpretation of hedging contracts with the failed bank's Swiss subsidiary, Bloomberg News reported yesterday. The ruling may result in London-based Lehman Brothers International Europe and its administrators PricewaterhouseCoopers LLP receiving an extra $1 billion, according to a written decision handed down this morning by Judge Mary Arden in the U.K. Court of Appeals. Lehman spread risk from its derivatives trades by using inter-company agreements with Swiss unit Lehman Brothers Finance SA. The appeal dealt with how those contracts should be closed out and whether a letter setting out conditions for unwinding those deals should be considered.
