Lehman Waterfall interest on contracts: insolvency | Practical Law

Lehman Waterfall interest on contracts: insolvency | Practical Law

The High Court has held that the post-administration statutory rate of interest on closed-out derivative contracts is the greater of the judgment rate and the rate applicable under the contract, even where the right to close out arises as a result of a post-administration action.

Lehman Waterfall interest on contracts: insolvency

Practical Law UK Articles 9-636-2905 (Approx. 3 pages)

Lehman Waterfall interest on contracts: insolvency

by Clifford Chance LLP and Practical Law Restructuring and Insolvency
Published on 01 Dec 2016United Kingdom
The High Court has held that the post-administration statutory rate of interest on closed-out derivative contracts is the greater of the judgment rate and the rate applicable under the contract, even where the right to close out arises as a result of a post-administration action.