Texas billionaire T. Boone Pickens, whose hedge fund has lost roughly $1 billion this year, (that includes nearly $300 million out of Pickens’s own pocket) — has sued a unit of defunct firm Lehman Brothers (LEHMQ.PK) for $59.9 million, claiming the bankrupt investment bank broke a default agreement by failing to repay collateral posted by Mr. Pickens.
Lehman Brothers Commodity Services Inc., notes Bloomberg – failed to return $18,157 collateral posted by Pickens and approx. $42 million posted by four of his BP Capital LLC funds after their derivatives deals were terminated by Lehman’s bankruptcy filing, Mr. Pickens said in a lawsuit, filed Monday in New York State Supreme Court in Manhattan.
“The notices of termination specified Lehman Holdings’ bankruptcy filing as the relevant event of default,” Pickens and the Dallas-based funds said in the breach-of-contract complaint. “Lehman has failed to pay the amounts due.”
Lehman Brothers Commodity Services and two affiliates face similar claims. On September 26, Bank of America (BAC) sued three Lehman Brothers units to recover nearly $500 million provided as collateral for derivative transactions.
A spokesman for New York-based Lehman, declined to comment, the news service reported.
Lehman Brothers, once the fourth-largest investment bank, filed for bankruptcy protection on September 15. The co. sold last month most of its U.S. operations, including its skyscraper headquarters and other real estate, for $1.54 billion to U.K.’s third- biggest bank and a major global financial services provider Barclays Plc.