Bloomberg News

Lehman Claim Trades, Minibond Sales Total $2.9 Billion

July 19, 2011

(Updates with minibonds in first paragraph.)

July 19 (Bloomberg) -- Lehman Brothers Holdings Inc. claims traded in June totaled $2.9 billion after Standard Chartered Plc agreed to buy so-called minibonds from its Hong Kong customers, SecondMarket Holdings Inc. said.

Asian investors’ sales to the bank of bankrupt Lehman’s equity-linked notes accounted for 13 percent of the face value of Lehman debt traded last month, SecondMarket said today in a report. Trades in Lehman claims during the past 12 months topped $29 billion, said the firm, which deals in illiquid securities.

About 43,000 Hong Kong investors bought an estimated $1.8 billion of the minibonds from various sellers before New York-based Lehman filed for bankruptcy in 2008. Investors protested almost daily outside bank branches in Hong Kong, banging cymbals and blaring pre-recorded statements from bullhorns after they were offered repayments of at least 60 cents on the dollar in 2009.

Separately, Lehman said this month that creditors holding more than $100 billion in claims gave their support to the company’s latest payout plan.

Once the world’s fourth-biggest investment bank, Lehman filed for bankruptcy on Sept. 15, 2008, with assets of $639 billion. It failed partly because of too much leverage, which it tried to hide, and risky real estate bets, said a bankruptcy examiner.

The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

--Editors: Stephen Farr, Peter Blumberg

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net.

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net.


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