<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Relief for Minibond investors?
</TR><!-- headline one : end --><TR>Trustee is considering proposals for new swap counterparty, says MAS </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Francis Chan
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Out of desperation, some investors of Minibonds had gathered last month to sign a petition to MAS for help. -- ST PHOTO: LIM SIN THAI
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->THERE is encouraging news for investors who bought Minibonds, a structured product linked to bankrupt US investment bank Lehman Brothers - there is a slim chance they may get some of their money back.
This is despite the confirmation yesterday that Lehman had, as expected, defaulted on Series 5 and 6 of the Minibond programme now that the 15-day grace period is over. Yesterday, HSBC Institutional Trust Services, trustee of the Minibond programme, informed the Monetary Authority of Singapore (MAS) of the default.
In a statement released late last night, MAS said that as requested by some investors, the trustee is now considering proposals for a new swap counterparty to replace Lehman for all series of the Minibond programme.
MAS said it understands that 'a few financial institutions are currently considering taking on (the) role' and should there be a firm offer from an appropriate party, the trustee would seek the necessary approval from investors.
Over the past three weeks, MAS had been bombarded with queries on what the central bank was doing to assist investors who had bought structured products linked to Lehman such as Minibonds and DBS' High Notes 5.
Out of desperation, some Minibond investors submitted a petition to MAS and a letter of appeal to Prime Minister Lee Hsien Loong for help. In the petition, investors called on MAS to, among other things, instruct HSBC Trustee not 'to force liquidate any series of the Minibonds without consulting the investors'.
Their appeals appear to have been heard by MAS and HSBC Trustee.
According to MAS, if there is no viable proposal for a new swap counterparty or if a proposal was not approved by investors, HSBC Trustee would start selling the underlying securities.
Proceeds from the sale would be used to pay the investors after deducting any other liabilities which are due. [email protected]
</TR><!-- headline one : end --><TR>Trustee is considering proposals for new swap counterparty, says MAS </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Francis Chan
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Out of desperation, some investors of Minibonds had gathered last month to sign a petition to MAS for help. -- ST PHOTO: LIM SIN THAI
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->THERE is encouraging news for investors who bought Minibonds, a structured product linked to bankrupt US investment bank Lehman Brothers - there is a slim chance they may get some of their money back.
This is despite the confirmation yesterday that Lehman had, as expected, defaulted on Series 5 and 6 of the Minibond programme now that the 15-day grace period is over. Yesterday, HSBC Institutional Trust Services, trustee of the Minibond programme, informed the Monetary Authority of Singapore (MAS) of the default.
In a statement released late last night, MAS said that as requested by some investors, the trustee is now considering proposals for a new swap counterparty to replace Lehman for all series of the Minibond programme.
MAS said it understands that 'a few financial institutions are currently considering taking on (the) role' and should there be a firm offer from an appropriate party, the trustee would seek the necessary approval from investors.
Over the past three weeks, MAS had been bombarded with queries on what the central bank was doing to assist investors who had bought structured products linked to Lehman such as Minibonds and DBS' High Notes 5.
Out of desperation, some Minibond investors submitted a petition to MAS and a letter of appeal to Prime Minister Lee Hsien Loong for help. In the petition, investors called on MAS to, among other things, instruct HSBC Trustee not 'to force liquidate any series of the Minibonds without consulting the investors'.
Their appeals appear to have been heard by MAS and HSBC Trustee.
According to MAS, if there is no viable proposal for a new swap counterparty or if a proposal was not approved by investors, HSBC Trustee would start selling the underlying securities.
Proceeds from the sale would be used to pay the investors after deducting any other liabilities which are due. [email protected]
