Typically, that method involves seeking quotes from at least three banks to determine what it would cost to replace the swap.
Since it was difficult, if not impossible, to find a new counterparty after the credit markets seized up after Lehman’s collapse, some nonprofits, municipalities and companies hired financial advisers to calculate how much it would cost to get into a replacement contract.
The talks may drag on for months.
“Welcome to Bankruptcyland,” said Bowles, the attorney. “Even though you thought I don’t exist, I do.”