Lehman Brothers Finance AG (in liquidation) v Klaus Tschira Stiftung GmbH and another company

Contract – Termination. The claimant investment company had entered into collateralised hedge transactions with the defendant companies using the 1992 ISDA Master Agreement. Those transactions were terminated on the insolvency of the claimant. The Chancery Division held that, on termination, the defendants' loss calculation had not been in accordance with the close-out provisions of the 1992 ISDA Master Agreement as incorporated into the transactions, and was not binding on claimant. Further, if the defendants had determined their loss in accordance with the contracts, they would have arrived at an aggregate figure of €22.84m.

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