Tuesday, February 16, 2010

Draft letter to Trustee of Minibond

I have prepared a draft letter for the Mini-bond investor to sebd by fax to the Trustee, HSBC. You have to change the letter to contain the details that is relevant to your case. So far, 31 investors have provided their particulars to me, asking for collective action to be taken. I will be e-mailing them to take this action.

If you have changed the draft to suit your circumstance, please send it to kinlian@gmail.com. I will share the draft with other investors (after removing your personal particulars)

DRAFT LETTER
Date


HSBC Institutional Trust Services (Singapore) Limited, 
21 Collyer Quay, #14-01 HSBC Building, 
Singapore 049320
By Fax: 65331077

Minibond – Series XX

Dear Sir,
I am a holder of the Mini-bond Series XX. My particulars are:

Name: xxxxxxxxxxxxxx
Certificate Number: xxxxxxxxxxx
Amount invested: $xxxxxxxxxx

I have received a letter from you, as the Trustee of the above Notes, informing me about the liquidation of the Notes as follows:

Fee to Lehman Brother Special Financing (LBSF): xxx%
Fee to liquidator: xxxx%
Legal fee: xxxx%
Residual value to Note holder: xxx%

I wish to ask for your clarification on the following:
1) What is the authority on which you have acted to liquidate the above Notes?
2) Why did you fail to call for a meeting of the Note holders to discuss the above action?
3) Who decided on the fee to be paid to LBSF? How is the payment of this fee in the interesst of the Note holders?
4) As a Note holder, am I legally bound to accept the action that you have taken to liquidate the Notes without my approval?

I wish to ask for you, as the Trustee, to convene a meeting of the Note holders for the above Series, so that these issues can be discussed and the appropriate explanation given to us.

Name
Address
Telephone
E-mail address

4 comments:

  1. Look guys. Here's the definition of a "trustee."

    An individual or organization which holds or manages and invests assets for the benefit of another. The trustee is legally obliged to make all trust-related decisions with the trustee's interests in mind, and may be liable for damages in the event of not doing so. Trustees may be entitled to a payment for their services, if specified in the trust deed. In the specific case of the bond market, a trustee administers a bond issue for a borrower, and ensures that the issuer meets all the terms and conditions associated with the borrowing.

    Source:
    http://www.investorwords.com/5086/trustee.html


    Mr Tan is even helping you write a polite letter of clarification to the trustees.

    (And again I asked where are all our Opposition, PAP and Nominated MPs who could also have helped in drafting a letter.)

    The trustee is supposed to be working for you.

    If you can't even do the simple task of filling in your name and signing the letter (sigh) ... can you, in the future, please keep your money in a POSB savings account and invest only in a HDB flat.

    I really cannot believe it is so easy to bully and con Singaporeans.

    ReplyDelete
  2. Full name of LBSF is:-
    Lehman Brothers Special Financing Inc, the swap counterparty. Address:
    745 Seventh Avenue, New York, New York 10019, United States of America.
    Full Name of trustee is:
    HSBC Institutional Trust Services (Singapore) Limited, 21 Collyer Quay, #14-01 HSBC Building, Singapoe 049320.

    ReplyDelete
  3. I think those who owned series 9 and 10 should have a good case as there is no reason to liquidate.

    ReplyDelete
  4. Thank you Mr Tan for providing us with a draft letter to the trustee.
    For your information, I have written to HSBC Institutional Trust Services Ltd with a copy to MAS.

    ReplyDelete