Minibond trustee in Singapore searches for new swap counterparty
Singapore investors, which bought Lehman Minibonds, have requested the trustee of the products to consider all proposals for a new swap counterparty to replace Lehman Brothers for all series of the Minibond programme. The request came after the trustee, HSBC Institutional Trust Services (Singapore), informed the Monetary Authority of Singapore (MAS) that the 15 day grace period for the coupon payment for Series 5 and 6 of the Minibond programme expired today and no payment has been received and as such, an event of default has occurred.
A number of financial institutions are currently considering taking on the role as counterparty to the products. If there should be a firm offer from an appropriate party, the trustee would then seek necessary approvals from noteholders. If there is no viable proposal for a new swap counterparty or if a proposal is not approved by noteholders, the trustee would commence selling the underlying
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