Martin Lee @ Sg
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Lehman Hong Kong Minibond Holders to Get Significant Payout

Lehman Brothers Minibond holders in Hong Kong have plenty to cheer about.

They (whether young or old, educated or uneducated) have been offered better compensation terms of at least 70% to 93% of their money back, receiver PricewaterhouseCoopers LLP said. After adding in an additional ex gratia payment from banks, the total payout will range from 85% to 96.5% for investors.

An earlier offer made in July 2009 was only for a 60% payout.

A group of Hong Kong investors have rejected the offer, saying they want 100% compensation.

In Singapore, investors who did not get any form of resolution with FIDReC had to settle for the residue value of the underlying Minibonds. This ranged from 21.5% to 70%, depending on the series of the Minibond note.

Taking into account those who did complain to FIDReC, about 12% of Minibond holders would have received back their full principal, 68% received partial settlement (of 50% or more), and the other 20% receiving less than 50% of their principal.

For the other structured products like DBS High Notes 5, Merrill Lynch Jubilee and a number of the Pinnacle notes, the people who did not managed to get any resolution via FIDRec (majority of them) would get back nothing (or next to nothing) as the residue value of the underlying notes was almost worthless.

Lehman Minibond Investors Offered Higher Payout After Hong Kong Protests (Bloomberg)

More Lehman Minibond Money on the Table (South China Morning Post)

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