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Lehman Brothers Finance SA claims Bank of Singapore Ltd. owes it $20 million over the termination of a series of equity derivative deals that took place between 2006 and 2008.
The Zurich-based arm of Lehman Brothers Holdings Inc. argues that Bank of Singapore owes it the money dating from when the Asian bank gave notice of early termination of the contracts following the bankruptcy of Lehman in September 2008, according to court documents filed at the High Court in London last month.
The Lehman unit, which specialized in derivatives, alleges that the Bank of Singapore wrongly calculated the amount it owed following the cancellation of the deals valued at more than $3.5 million.
“The defendant said that it had arranged payment of that amount together with interest; however, no payment was made,” Lehman Brothers Finance said in the court filings.
This week the administrator of Lehman’s London unit said it will start returning money to creditors before the end of 2012, more than three-and-a-half years after the bank’s collapse sparked a global financial crisis.
Lehman’s lawyers, Field Fisher Waterhouse, declined to comment.
Isabella Chia, a spokeswoman at Bank of Singapore, declined to comment.
The case is Lehman Brothers Finance AG v. Bank of Singapore Limited at the High Court of Justice, Queen’s Bench Division Commercial Court #: 12-488
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