Willkie Obtains Win In Credit Default Swap Case

Monday, May 3, 2010 - 01:00

On April 12, a New York state court judge granted Willkie's motion to dismiss with prejudice a complaint bought against its clients Merrill Lynch International (Merrill International) and Merrill Lynch & Co., Inc. (collectively, Merrill Lynch) by DKR Soundshore Oasis Holding Fund, Ltd. (Oasis). Oasis sought to enforce the parties' credit default swap (CDS) transaction, under which Merrill International was the seller and Oasis the buyer of credit protection against certain defined "Credit Events" relating to a debt obligation issued by the "Reference Entity."

The case, DKR Soundshore Oasis Holding Fund Ltd. v. Merrill Lynch International and Merrill Lynch & Co., Inc., No. 650327/09, was argued before Judge Barbara R. Kapnick of the Supreme Court of the State of New York, New York County Commercial Division. Willkie's victory is profiled in the Am Law Litigation Daily in a feature article entitled "Willkie Wins for Merrill Lynch in Credit Default Swap Dispute with Hedge Fund" (4/15/2010). The case was handled by partners Richard Bernstein and Mary Eaton, and associates David Gise, Emma Deacon, and Melissa Yang.

Business Reorganization and Restructuring Department Co-Chairs Marc Abrams and Matthew Feldman were named to The American Lawyer's 2010 "Dealmakers of the Year" in recognition of their respective roles in the 2009 landmark reorganization of Delphi Corporation. Mr. Abrams is lauded for leading the Willkie team advising a group of debtor-in-possession lenders under a $3.25 billion facility, including successfully orchestrating and implementing one of the largest credit bids lodged in a bankruptcy auction. Separately, Mr. Feldman is recognized for his role in the Delphi restructuring in his capacity as the Chief Legal Advisor to the Obama administration's Presidential Task Force on the Auto Industry.

Separately, Mr. Abrams was recently elected to the American College of Bankruptcy's Board of Regents and Mr. Feldman was recently named as one of Turnaround & Workouts "Outstanding Restructuring Lawyers for 2009.