Citadel Says Lehman Owes It $470 Million From Derivatives

Aug 26 2009 | 12:58pm ET

Citadel Investment Group has filed a claim against Lehman Brothers Holdings, arguing that the collapsed investment bank owes as much as $470.5 million.

The Chicago-based alternative investments giant made its move in U.S. Bankruptcy Court in New York last month, ahead of an Oct. 22 deadline for parties to submit proof of claims against Lehman. According to Citadel, its Citadel Equity Fund had derivative contracts with Lehman when it collapsed. The firm is seeking the value of the derivatives contracts, off-set by the collateral held when the bank collapsed, as well as the cost to replace the trades.

In its filing, Citadel said its claim was partly based on guarantees, although it did not elaborate.


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