HK banks agree on resolution for Lehman minibonds

HONG KONG, March 27 (Reuters) – Sixteen Hong Kong banks have
agreed on a deal to enable investors in structured products of
the now bankrupt Lehman Brothers recover a majority of their
investments.

Investors in Hong Kong lost nearly $2.5 billion on
structured products, called ‘minibonds’ offered by U.S.
investment bank Lehman Brothers, which collapsed in 2008.

A statement from receivers PricewaterhouseCoopers on Sunday
said the agreement was to result in most of Lehman’s minibond
investors recovering over 80 percent of their original
investment from the underlying collateral.

Distribution to minibond investors by the 16 banks,
including Bank of China Hong Kong and Bank of
Communications Hong Kong, is set for June this year.

Asian-focused lender Standard Chartered agreed to
buy back HK$1.48 billion ($192 million) worth of equity-linked
products guaranteed by Lehman, Hong Kong regulators said earlier
this month.

(Reporting by Farah Master; Editing by Muralikumar
Anantharaman)

HK banks agree on resolution for Lehman minibonds