The payout value of the various Minibond series was announced yesterday. Depending on which Minibond tranche you held, the percentage of recovery will range from 21.5% to 70.8%.

Tranche Series Percentage Recovery* (%)

Series 01 Tranche A (SGD Notes ) 21.5
Series 01 Tranche B (USD Notes) 24.0
Series 02 Tranche A (SGD Notes) 62.4
Series 02 Tranche B (USD Notes) 70.8
Series 03 Tranche A (SGD Notes) 55.9
Series 03 Tranche B (USD Notes) 64.0
Series 03 Tranche C (AUD Notes) 47.3
Series 05 (SGD Notes) 29.8
Series 06 (SGD Notes) 40.0
Series 07 (SGD Notes) 59.5
Series 08 (SGD Notes) 63.1
Series 09 (SGD Notes) 57.7
Series 10 (USD Notes) 62.4

I had expected about 50-60% recovery values for the different series and the majority indeed does fall into that range. Series 1 and 5 Minibond holders are the worst off in the amount they are getting. The series with the most number of investors are series 2, 3 and 5.

Payments to the noteholders will be made on 12 February 2010. The actual date that you receive your payment will depend on whether you hold a direct account with CDP or whether you hold the Notes through a nominee account.

More news on this:

HSBC Minibond Announcements

MAS Welcomes Announcement of Distribution of the Recovery Values of the Minibond Notes

Payout for Minibond Holders From 12 Feb (CNA)

In what must be the most positive news since the collapse of Lehman Brothers, the receivers of Lehman Minibonds, PwC,  announced that they have reached an agreement with Lehman Brothers Special Financing (LBSF) to obtain the underlying collateral of the Minibond notes. This removes the need for any costly litigation.

PwC has started the process of realising the residual values of the Minibond notes and investors may be able to get back the residual value within a few months. The amount to be given to the noteholders will vary significantly, depending on the series and tranches held.

Investors who have accepted partial settlement offers as part of the dispute resolution process by the Financial Institutions (FI) or the Financial Industry Disputes Resolution Centre would have retained a portion of the notes, and will get to keep the residual value arising from those notes.

This news has no impact on those investors who accepted full settlement offers as they would have already received 100% of their principal investment amount.

More news:

Partial Refund for Lehman Minibond Holders

MAS Welcomes Receivers and Trustee’s Announcement of Settlement for Minibond

Minibond Payback (Straits Times)

Citibank became the first financial institution in Hong Kong to be taken to court by the Consumer Council over the Lehman Minibond case.

Nurse Chan Mei-ying is suing Citibank on the grounds that it misrepresented the nature and risk of a financial product. She claimed to have lost HK$500,000.

The Consumer Council is also preparing for more than 100 other cases that have potential for court action.

Read complete story here:

Lehman Investor to Get Her Day in Court

A lawsuit was filed in the high court on 9th September 2009 by the Minibond Investors Action Group (MIAG) against the issuer (Minibond Limited), arranger (Lehman Brothers Singapore Pte Ltd) and a distributor (Royal Bank of Scotland PLC (RBS)) of the Minibond Secured Note Programme (Minibond Programme).

You can read the press release of the lawsuit as well as the basis on which the MIAG is arguing their case here:

MIAG Lawsuit Against Lehman Brothers

Minibond investors who have failed to get any form of settlement can contact the MIAG at their website if you wish to know more or be part of their legal action.

There will be another gathering this Saturday for affected victims of structured products (Minibond, DBS High Notes, Pinnacle, Jubilee) organised by Tan Kin Lian.

Date of Gathering: 22nd August 2009
Place: Speaker’s Corner, Hong Lim Green
Time: 5.00 pm

Activities:

1. Speech by Tan Kin Lian
2. Hold placards with messages
3. Sign petition (for those who did not sign online)
4. Talk to other investors at the gathering