Investor meets HSBC Trustee

Dear Mr.Tan

I decided to vist HSBC Trustee's office because I could not get any satisfactory answers over their hotline. Two ladies in black pantsuits ushered me into a meeting rm. They appear to be quite senior in rank and asked for my identity card before taking my queries. I did not manage to obtain their names. Here are my questions and their replies:

1) Did you sieze the underlying assets and have examined them? Are they worthless, fraudulent or they are genuine and have value?

Answer: We are still examining and evaluating them.

2) What constitute the underlying assets of series 5 & 6 which were seized?

Answer: We cannot divulge this info.

3) MAS has directed you to keep investors informed what options are available to investors?

Answer: Presently some parties have approached them to look at the documents as potential new swap Counterparty but there are no offers. If after a period of time have lapsed and no offers are forthcoming they will proceed to liquidate.

4) You mean proceed with a fire sales in a frozen credit market? Can you hold it to maturity or for a year or two waiting for conditions to improve? or call an AGM to put it to shareholders?

Answer: AGM will be called only for the purpose of approving the new Swap Counterparty and 75% votes in $ terms is required. No shareholders approval is required for liquidation. As Trustee they cannot hold on to shareholders' assets indefinitely.

LTW

REPLY
The replies given by HSBC Trustees are unsatisfactory. I hope that the trustees realise that they have a fiduciary duty to the investors to give a complete statement of account on a timely basis and to take necessary action to protect the best interest of the investors. I shall be consulting a lawyer on this matter to see if there areas of breach of duty.