HONG Kong banks which sold Lehman-linked investment products will contribute up to HK$100 million (S$19 million) to help protect investors' interests in possible United States lawsuits. The move follows the emergence of legal complexities flagged by lawyers involved in US bankruptcy proceedings over the collapsed Lehman Brothers.

Singapore investors who bought Minibonds face similar legal hurdles in their battle to get at least some money back.In October, the 18 Hong Kong banks had agreed to buy back Minibonds from investors at market value after pressure from the territory's government. They had initially planned to start the buy-back process earlier this month.

However, this was derailed after the trustee of Minibonds in Hong Kong was notified by Lehman's lawyers in the US of the possibility of legal challenges to the buy-back process.The US investment bank's lawyers are claiming that proceeds of any sale of underlying collateral of Minibonds should be paid to Lehman first instead of investors.

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