Lehman Brothers investors in Singapore 'may recover their money'

1 October 2009

Investors in Singapore who bought Lehman Brothers Minibonds before the collapse of the company last year may be able to receive what is left of their investment.

A deal has been reached between Lehman Brothers Special Financing Inc and PricewaterhouseCoopers (PWC), the firm representing the investors.

Many investors in Singapore and Hong Kong had put millions of dollars of personal savings into the scheme.

In Hong Kong, 16 banks paid out more than $800 million to investors who had pumped almost $2.5 billion into the toxic Lehman bonds.

But in Singapore, compensation terms have been considerably less generous, with ABN AMRO offering investors an average 20 per cent of the capital they had lost.

The Monetary Authority of Singapore welcomed the PWC announcement and said the deal had resolved the legal complexities which had been blocking investors from receiving compensation.

More than 16,000 claims have been filed against Lehman Brothers from creditors ranging from Credit Suisse to the New York Giants football team.

By Asim Shah

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