Meteor sent correspondence to advisers on Friday stating that direct investments are “probably fully recoverable” as they are backed by Lehman Brothers Securities NV Netherlands Antilles which is not currently subject to any kind of administration or insolv- ency procedure.
But Lowes says: “Those with direct investment should not get too excited at the news as while LBS is currently apparently solvent, it should not be forgotten that it has still lost the backing of the ultimate parent company that provi- ded the strength.”
Affected Meteor plans made as Isa investments are backed by Lehman Brothers Treasury Co BV Netherlands which is in administration.
Meteor says: “It is too early for the Dutch administrator of LBT to be able to publish details of the net asset position of LBT and the management of LBS are still reviewing that com- pany’s solvency. We are in contact with the management of LBS and the administrator of LBT and will continue to monitor the situation and provide updates.”
A spokesman advising various structured product providers says it could be a year before investors hear anything.