Bankrupt Lehman Brothers Holdings Inc. sued Intel Corp., alleging that the world’s largest semiconductor maker breached a $1 billion swap agreement, Bloomberg News reported yesterday. Under a 2008 accord, Intel gave $1 billion to Lehman’s over-the-counter derivatives unit in August of that year in exchange for 50 million shares of its stock, to be delivered on Sept. 29, 2008, according to a complaint filed yesterday in the U.S. Bankruptcy Court in Manhattan. Lehman posted $1 billion in cash collateral to Intel as part of the deal, which specified that in the event of early termination, Intel would be compensated for its losses. Intel ended the deal two weeks after Lehman filed for bankruptcy protection on Sept. 15, 2008, and seized the $1 billion in cash collateral and has refused to return it, even though its losses on the swap were “far less than $1 billion,” lawyers for Lehman said in the complaint. Lehman filed the biggest bankruptcy in U.S. history in September 2008, listing assets of $639 billion. The case is Lehman Brothers Holdings Inc. v. Intel Corp., 13-1340, U.S. Bankruptcy Court, Southern District of New York (Manhattan).
