The FAQ posted by PWC on the Lehman Minibond can be found here:
PWC Minibond FAQ
The FAQ can probably be much shorter as it has a lot of repeated sentences. Some of the key points covered are:
- Explaining the structures of Minibond series 1-3 and 5-10 both at the Minibond level and the underlying levels.
- Unable to give a timeframe for the unwinding of the notes; it is estimated to take two years or more due to complex legal issues.
- Swap arrangements of the notes (both at Minibond levels and underlying levels) have been terminated to protect the noteholders. However, this could be challenged by lawyers acting for Lehman Brothers in the future.
- As series 9 and 10 involve only normal corporate bonds as the underlying, their resolution will take a shorter time compared to the rest.
- Restructuring is not an option for now due to legal complexities.
Other Minibond News
Hong Kong lawmakers to call officials on Minibond
Fiscal sector urged to study Minibond report (Hong Kong)
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