Fondazione Enasarco v Lehman Brothers Finance SA and another

Contract – Terms of contract. The Chancery Division ruled on whether a special purpose vehicle company (ARIC) had validly calculated its loss following the automatic early termination of a put option,which had been granted to it by the first defendant, Lehman Brothers Finance SA (LBF). The early termination had been triggered following the collapse of the Lehman's Brother's group. The court held that ARIC had validly calculated its loss in accordance with the relevant provisions of an International Swaps and Derivatives Association master agreement (1992 edition) and that, accordingly, the claimant was entitled to the payment from LBF of US$61,507,902, together with interest.