Comments on: The Road Ahead for Minibond Investors

By: lioninvestor

lioninvestor — Mon, 06 Apr 2009 16:21:39 +0000

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.

By: smellarat

smellarat — Mon, 06 Apr 2009 15:51:15 +0000

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.

By: deefeeted

deefeeted — Sun, 29 Mar 2009 17:11:50 +0000

hi 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.

By: lioninvestor

lioninvestor — Sun, 29 Mar 2009 15:05:22 +0000

Sorry, I don’t quite get it. Shouldn’t the 10,000 units be worth $10,000 at face value?

By: deefeeted

deefeeted — Sun, 29 Mar 2009 01:09:44 +0000

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.