Just curious, why bank debts are ranked higher than MTN?
I am a holder of P&Ps. I already resigned to the fact that I would get nothing back.
Just hope that CAD, MAS or ACRA would prosecute OL & BOD for this fiasco. Even laymen like me can see so many issues, can't imagine our gov. turning a blind eye.
I completely agree with you that government is turning a blind eye. Even the news of the liquidation was leaked to manage everyone's expectations.
1. Some of the creditor-banks are secured. What's left is little after the three years debts is barely enough to pay these secured lenders. In company law, unsecured senior debts include unsecured bank creditors. Lawyers are also paid to argue in court that unsecured bankers can be craved out along with trade vendors, and ranked higher than MTN bondholders.
2. Initially, Perpetuals Bondholders were damn important because Olivia broke the laws by paying herself Hyfluxshop before paying the Perpetual bonds. This violated listing rules and fundamentals of company laws. All of us thought that there would be no need to waste money on civil suits because CAD would intervene. This matter alone can hold the whole board of directors accountable. However, like you say, regulators turned a blind eye.
3. Next, DBS was the first to be bailed out because MAS said DBS did not wrong. To all the PnPs and MTN holders, the prospectus never highlighted the substantial risk and true business nature of Tuaspring; again, we were under the impression that MAS would act against DBS (and we need not waste money on civil suits). This is why MAS quickly excused DBS.