Lehman Brothers Holdings Inc., the holding company for the fourth-largest United States investment bank, filed for protection under Chapter 11 of the United States Bankruptcy Code on September 15, 2008, marking the largest US bankruptcy filing in history. Following the filing in the Southern District of New York, the directors of Lehman Brothers International (Europe) and three of its UK subsidiaries applied for administration (a process similar to Chapter 11) in the UK. In addition, Bloomberg News reports that Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy protection in Tokyo District Court. The US, UK and Japanese proceedings may have implications for counterparties to financial contracts, including swaps of all kinds, loan participations and guaranteed investment contracts involving Lehman, parties with accounts at Lehman, those settling trades with Lehman and those insuring or providing cover for Lehman debt, among others.
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