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On January 31, 2014, the United States District Court for the Southern District of New York affirmed the dismissal of an adversary proceeding brought by Highland Capital Management, L.P. against the Firm’s 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 proceedings.

Plaintiff Highland Capital Management asserted claims for tortious interference with contract and with prospective business relations, premised upon the allegation that the Firm’s client wrongly denied plaintiff the opportunity to participate as a lender in the exit financing.  On April 10, 2013, Judge Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District New York dismissed the adversary proceeding in its entirety.  The Bankruptcy Court held that no definitive agreement existed between the parties to support a claim for tortious interference with contract and also held that the Firm’s client had a privilege not to deal with Highland, regardless of motive.

On appeal, District Judge Analisa Torres affirmed the ruling of the Bankruptcy Court in its entirety.

The Simpson Thacher team includes Linda H. Martin, Katherine McLendon, Daniel Stujenske, and Minta Nester.