Who is Paying for Minibond Legal Fees?
It has been reported in the news that the distributors of the Minibond products will be contributing money to the receivers’ cost of obtaining legal opinions. This is required due to the complex issues raised from lawyers dealing with Lehman Brothers in the US.
Even DJ newswire picked up the news from our MAS announcement and if you read the DJ report, you will probably interpret it at face value – distributors footing the legal fees.
Lehman Minibond Distributors to Help Pay Legal Fees (DJ newswire)
However, if you read the announcement by MAS carefully, you will find this sentence:
“The expenses will be refunded to the distributors from any proceeds of enforcement in the usual manner.”
Distributors of Lehman Minibond Notes to Contribute to Legal Defence (MAS announcement)
So in actual fact, the legal bill will be paid by Minibond investors.
Legal War Chest Beefed Up (Straits Times)