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Hi lioninvestor
Wonder why this FI is wiling to offer $15,000 for only 10,000 units of a $50,000 investment. Does it mean the balance 40,000 units is worthless and likely to realise zero residual value? I was told my brother-in-law was offered this settlement deal.
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Hi smellarat,
No one really knows what the balance is worth. It probably won’t be much, and it will take a few years to settle.
Perhaps this is one way of “window dressing” the settlement.
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My FI is willing to buy back 10,000 units of my $50,000 minibond and offered cash settlement amounting to almost 30% of my $50,000 invested. I would like to accept the settlement offer for the time being: what I want to know is whether I can still sue them for the remaining 40,000 units in my possession later.
ReplyHi deefeeted,
Are they paying you $15k to takeover all your holdings?
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Yes, $15,000 to take over only 10,000 units of 50,000 holding; the balance 40,000 remain. Later on, entitled to any remaining residual value upon realisation of the notes.
ReplySorry, I don’t quite get it. Shouldn’t the 10,000 units be worth $10,000 at face value?
Replyhi lioninvestor
Yes, in theory the 10,000 units should be worth $10,000 at face value, but they make it look at if they are compensating $15,000 (30%) for the $50,000 failed investment. The balance 40,000 units which I still get to keep, I reckon, is as good as worthless, but in the event of any realisation hopefully, I still get what is left of any remaining residual value.
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