In Re Lehman Bros. Inc.

MEMORANDUM DECISION ENFORCING THE AUTOMATIC STAY AND COMPELLING PAYMENT BY UBS AG

JAMES M. PECK, Bankruptcy Judge.

Introduction

The question presented in this contested matter is whether an agreement to set off amounts owed to affiliates of a counterparty (a so-called triangular setoff) is enforceable in a ease brought under the Securities Investor Protection Act of 1970 (“SIPA”), 15 U.S.C. §§ 78aaa et seq. 1 The parties are well aware of the holding of the SemCrude case from the District of Delaware finding that such contractual provisions are ineffective in bankruptcy and are testing to see…