MFA Files Amicus in Lehman Litigation to Support Judicial Asset Sale Process

MFA filed an amicus brief in the Barclays Capital and LBI SIPA Trustee litigation before the Second Circuit Court of Appeals. MFA's brief, while disagreeing with the position of the lower court, supports the reaffirmation of the principles of transparency and finality inherent in the unique Section 363 sale process, upon which capital market investors have come to depend. MFA supports the Section 363 sale procedures under bankruptcy law: (i) non-ordinary course transfers of a debtor's assets must be reviewed pursuant to the Section 363 notice and hearing requirements; (ii) public representations made at a Section 363 sale hearing are binding and can be relied upon by all affected parties including customers and creditors; and (iii) once a sale is approved, material modifications may not be made absent further Section 363 public notice, review and approval by the bankruptcy court.

View amicus brief here (links externally to MFA website). See also: Motion for permission to file.