News & Events

On April 10, 2013, Judge Robert E. Gerber of the United States Bankruptcy Court for the Southern District of New York dismissed an adversary proceeding brought against Simpson Thacher client UBS Securities LLC in connection with its role as joint lead arranger and joint bookrunner of a $1 billion senior secured term loan facility comprising part of the financing for Lyondell Chemical Company’s emergence from bankruptcy.

Plaintiff Highland Capital Management, L.P.’s claims for tortious interference with contract and with prospective economic relations rested upon the allegation that UBS wrongly denied plaintiff the opportunity to participate as a lender in Lyondell’s exit financing. 

As to the first claim, the Court found that there was no contract to support Highland’s claim for tortious interference with contract.  The Court further held that plaintiff had failed to state a claim for tortious interference with prospective contractual relations because UBS was protected by an absolute privilege under New York law to choose with whom it will do business.

The Simpson Thacher team included Linda Martin, Kathrine McLendon, Daniel Stujenske and Minta Nester.  Ms. Martin argued the motion to dismiss on behalf of UBS Securities LLC.