Almost full payback for 31,000 minibond investors

Wednesday, June 15, 2011

All 31,000 Lehman minibond holders in Hong Kong have got most of their money back in the past two days, with some being repaid nearly 98 percent.

PricewaterhouseCoopers, the receiver of Lehman Brothers Holdings, said yesterday holders of series 10 to 12, 15 to 23 and 25 to 36 of the minibonds received 71.43 to 95.1 percent of their investment in the structured notes.

As well, seller banks provided ex-gratia payments of 50 percent of any shortfall in recovery, capped at 15 percent of the principal. That means investors have received in total 86 percent to 97.55 percent of their principal.

In April, Lehman Brothers won approval in a US court for a change in settling derivative transactions, defeating an objection from Hong Kong minibond holders.

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"We hope the distributions, which will result in significant and substantial returns, will bring an end to what has been a difficult period for investors," PwC said. TONY LIAW