<TABLE id=msgUN cellSpacing=3 cellPadding=0 width="100%" border=0><TBODY><TR><TD id=msgUNsubj vAlign=top> Coffeeshop Chit Chat - MINIBOND CONFIRM WORTHLESS</TD><TD id=msgunetc noWrap align=right>
Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR class=msghead><TD class=msgF noWrap align=right width="1%">From: </TD><TD class=msgFname noWrap width="68%">SGNEWSALTE <NOBR></NOBR> </TD><TD class=msgDate noWrap align=right width="30%">7:13 am </TD></TR><TR class=msghead><TD class=msgT noWrap align=right width="1%" height=20>To: </TD><TD class=msgTname noWrap width="68%">ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 3) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft width="1%" rowSpan=4> </TD><TD class=wintiny noWrap align=right>3275.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>No hope liao...all gone. Just remember who to vote for in the next election.
http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_309507.html
Bids to save Minibonds fail <!--10 min-->
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR></TR><TR></TR><TR><TD><!-- headline one : start --></TD></TR><TR></TR><TR><TD><!-- headline one : end --></TD></TR><TR><TD><!-- Author --></TD></TR><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Francis Chan
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The products, linked to bankrupt United States investment bank Lehman Brothers, will now be unwound and likely to be rendered largely worthless. -- PHOTO: REUTERS
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<!-- START OF : div id="storytext"-->LAST ditch attempts to keep ill-fated Minibonds alive appear to have failed.
This has largely wiped out the hopes of getting a significant portion of their money back for about 8,000 investors here who sank $375 million into the complex products.
The products, linked to bankrupt United States investment bank Lehman Brothers, will now be unwound and likely to be rendered largely worthless.
HSBC Institutional Trust Services Singapore, the trustee for Minibonds, said on Tuesday night that restructuring proposals had been ruled out for now.
One key factor is a notice from lawyers involved in US bankruptcy proceedings for Lehman, who have reserved the right to challenge all aspects of the unwinding process for Minibonds.
A prolonged and complex litigation process is now expected as a result.
HSBC Trustee and PricewaterhouseCoopers Singapore (PwC) - the appointed receivers for Minibonds - have decided that restructuring is no longer a viable option at the moment.
HSBC Trustee said it will now proceed with unwinding Minibonds, before PwC, as receivers, can again consider any restructuring options or start the unwinding of any remaining collateral.
According to PwC, that involved process could take at least two years or more to complete, Investors caon only hope that the receivers succeed at salvaging whatever they can from the failed product's assets before determining if investors get any money at all back.
'I am sure there will be very little residual value left - don't forget they still have to pay for the unwinding process, so I guess it's just like DBS High Notes: Worthless,' said one Minibonds investor, who asked to be known only as Mrs SH.
'A lot of people are going be very unhappy. It is going to be bad for the bank, it is going to be bad for everyone and there will be many repercussions,' she added. She is among those in an investor group which first petitioned the MAS and trustee to explore restructuring options on Sept 24.
Plans by banks in Hong Kong to buy back Minibonds have also been derailed.
According to the Hong Kong Association of Banks, HSBC Trustee has also received notice from lawyers in the US 'regarding the seniority of different types of creditors.'
To date, Minibond series 5 to 10 have already defaulted, while Series 1, 2, and 3 are also expected to go into default soon.
HSBC Trustee said that on default, it intends to appoint PwC as receiver. Then, the process for each series under the Minibonds programme will be 'broadly similar.'
Mr Dominic Nixon, one of three receivers and partner at PwC, assured investors that as receivers, PwC's role and duty would be to safeguard their interests throughout the process.
He appealed to investors for patience. 'While we are working as quickly as possible to get a resolution for noteholders here in Singapore, due to the multitude of factors that are not within the immediate control of the trustee and receivers, this cannot be resolved within a short span of time,' he said.
Separately, the Monetary Authority of Singapore (MAS) said that it expects the trustee, receivers and distributors 'to do their part to ensure that noteholders' legal rights are vigorously defended, and to put in the necessary resources to do so.'
It also said in a separate statement on Tuesday night that the legal issues do not affect the ongoing handling of complaints by financial institutions based on a three-step process it has set up.
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http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_309507.html
Bids to save Minibonds fail <!--10 min-->
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR></TR><TR></TR><TR><TD><!-- headline one : start --></TD></TR><TR></TR><TR><TD><!-- headline one : end --></TD></TR><TR><TD><!-- Author --></TD></TR><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Francis Chan
</TD></TR><TR><TD><!-- show image if available --></TD></TR><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
The products, linked to bankrupt United States investment bank Lehman Brothers, will now be unwound and likely to be rendered largely worthless. -- PHOTO: REUTERS
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"-->LAST ditch attempts to keep ill-fated Minibonds alive appear to have failed.
This has largely wiped out the hopes of getting a significant portion of their money back for about 8,000 investors here who sank $375 million into the complex products.
The products, linked to bankrupt United States investment bank Lehman Brothers, will now be unwound and likely to be rendered largely worthless.
HSBC Institutional Trust Services Singapore, the trustee for Minibonds, said on Tuesday night that restructuring proposals had been ruled out for now.
One key factor is a notice from lawyers involved in US bankruptcy proceedings for Lehman, who have reserved the right to challenge all aspects of the unwinding process for Minibonds.
A prolonged and complex litigation process is now expected as a result.
HSBC Trustee and PricewaterhouseCoopers Singapore (PwC) - the appointed receivers for Minibonds - have decided that restructuring is no longer a viable option at the moment.
HSBC Trustee said it will now proceed with unwinding Minibonds, before PwC, as receivers, can again consider any restructuring options or start the unwinding of any remaining collateral.
According to PwC, that involved process could take at least two years or more to complete, Investors caon only hope that the receivers succeed at salvaging whatever they can from the failed product's assets before determining if investors get any money at all back.
'I am sure there will be very little residual value left - don't forget they still have to pay for the unwinding process, so I guess it's just like DBS High Notes: Worthless,' said one Minibonds investor, who asked to be known only as Mrs SH.
'A lot of people are going be very unhappy. It is going to be bad for the bank, it is going to be bad for everyone and there will be many repercussions,' she added. She is among those in an investor group which first petitioned the MAS and trustee to explore restructuring options on Sept 24.
Plans by banks in Hong Kong to buy back Minibonds have also been derailed.
According to the Hong Kong Association of Banks, HSBC Trustee has also received notice from lawyers in the US 'regarding the seniority of different types of creditors.'
To date, Minibond series 5 to 10 have already defaulted, while Series 1, 2, and 3 are also expected to go into default soon.
HSBC Trustee said that on default, it intends to appoint PwC as receiver. Then, the process for each series under the Minibonds programme will be 'broadly similar.'
Mr Dominic Nixon, one of three receivers and partner at PwC, assured investors that as receivers, PwC's role and duty would be to safeguard their interests throughout the process.
He appealed to investors for patience. 'While we are working as quickly as possible to get a resolution for noteholders here in Singapore, due to the multitude of factors that are not within the immediate control of the trustee and receivers, this cannot be resolved within a short span of time,' he said.
Separately, the Monetary Authority of Singapore (MAS) said that it expects the trustee, receivers and distributors 'to do their part to ensure that noteholders' legal rights are vigorously defended, and to put in the necessary resources to do so.'
It also said in a separate statement on Tuesday night that the legal issues do not affect the ongoing handling of complaints by financial institutions based on a three-step process it has set up.
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