Singapore, 12 December 2008… MAS has secured the agreement of the distributors of the Lehman Brothers Minibond notes to contribute to the receivers’ cost of obtaining legal opinions from the relevant jurisdictions on noteholders’ legal rights given the potential for challenges to be mounted by Lehman Brothers in respect of the unwinding process for the notes.

2   The trustee for the Minibond notes had earlier received a notice from the lawyers representing Lehman Brothers in the Chapter 11 bankruptcy proceedings in the US that they reserve the right to challenge actions taken by the trustee on the notes. The receivers have informed MAS that they have retained senior lawyers in the relevant jurisdictions to provide advice to protect noteholders’ interests. The distributors will pay for the relevant expenses incurred at this stage of the enforcement process as the collateral, from which the costs of enforcement would normally be recovered, cannot be freed up until the legal issues are resolved. The expenses will be refunded to the distributors from any proceeds of enforcement in the usual manner.

3   MAS welcomes the move by the distributors to help vigorously defend noteholders’ legal rights. While the process to resolve these issues may be protracted in view of their complexity, we will work closely with all parties involved to achieve the best possible outcome for noteholders. MAS will also continue to consult with our legal and financial advisers, Mr Davinder Singh, Senior Counsel, and Deloitte & Touche Corporate Finance Pte Ltd on the implications of the legal issues raised by the lawyers representing Lehman Brothers.

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