Buy-back figures go to legislature
Holders of Lehman Brothers minibonds could have received up to 78 per cent of their principal investment amounts had legal hurdles in the United States not blocked a buy-back.
A report sent to the legislature showed investors in 12 of the 28 series of minibonds sold in Hong Kong could have received 52.34 to 78.31 per cent of their principal if banks had been allowed to go ahead with a buy-back offer as planned this month.
Twelve of the series would have received 11.19 to 14.79 per cent, the figures - which were current in November - show.
At the lowest end of the spectrum, investors would have received just 0.82 per cent back because their products were structured differently from all the other series. But even if a buy-back goes ahead later they will receive a fraction of that amount as values have continued to fall.
The Hong Kong Association of Banks taskforce on Lehman derivative products submitted the report, by Ernst & Young, to the Legislative Council's financial affairs panel. The panel will discuss the buy-back proposal today.
Banking industry sources said the association would restart the buy-back procedure with a new valuation if the US legal hurdles were overcome. But they said that due to the deteriorating financial situation and the legal hurdles, the figures - which were current as of November 21 - were no longer valid.