For Immediate Release Wednesday, July 6, 2005
For More
Information, Please Contact:
ISDA and TBMA File
Joint Amicus Brief in Enron Bankruptcy Litigation
NEW YORK,
Wednesday, July 6, 2005 – The International Swaps and Derivatives
Association (ISDA) and The Bond Market Association (TBMA) today filed a joint
amicus brief supporting Bear Stearns’ request to file an interlocutory appeal
of the bankruptcy court’s decision denying Bear Stearns’ motion to dismiss an
adversarial action by Enron in connection with settlement payments on its
outstanding equity derivatives transactions. The two Associations argue that, by denying the motion to dismiss the adversary proceeding,
the bankruptcy court has upset the carefully constructed congressional design
set out in the Bankruptcy Code, which could potentially lead to the disruption
of the financial markets. Because it is
critical to the sound operation of the financial markets that the issues
addressed in the bankruptcy court’s opinion be resolved in a definitive and
precedential manner—and because of the potentially unsettling effect on those
markets of the bankruptcy court’s decision—the Associations believe that Bear
Stearns’ motion to bring an interlocutory appeal should be granted.
ISDA
is the global trade association representing leading participants in the
privately negotiated derivatives industry. ISDA was chartered in 1985, and
today has more than 650 member institutions from 47 countries on six
continents. These members include most of the world's major institutions that
deal in privately negotiated derivatives, as well as many of the businesses,
governmental entities and other end users that rely on over-the-counter
derivatives to manage efficiently the financial market risks inherent in their
core economic activities. Information about ISDA and its activities is available
on the Association's web site: www.isda.org.