Lehman notes repurchase deal reached with Citibank HK
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Xinhua, July 9, 2011
Hong Kong's Securities & Futures Commission and the Monetary Authority announced on Friday that an agreement has been reached with Citibank (Hong Kong) Limited on market-linked and equity-linked notes issued by Lehman Brothers between March 2007 and June 2008.
Citibank HK agreed to make a repurchase offer to eligible customers holding outstanding notes distributed by Citibank HK at a price equal to 80 percent of the total value of each eligible customer's investment in the notes.
The total value of the repurchase offer is estimated to be about 1.06 billion HK dollars (about 136.07 million U.S. dollars), covering about 92 percent of Citibank HK customers holding outstanding notes.
The bank will also pay top-up payments to those customers of outstanding notes with whom the bank has already entered into settlement agreements but would otherwise have been eligible to receive a repurchase offer.
The Monetary Authority also announced on Friday that investigation of over 99 percent of a total of 21,814 Lehman- Brothers-related complaint cases received has been completed. Investigation work is underway for the remaining 130 cases.
