THE Monetary Authority of Singapore (MAS) has enlisted senior counsel Davinder Singh to advise it on the latest legal issues faced by the ill-fated Minibonds structured notes.

The central bank said on Thursday night that it has called on Mr Singh, the chief executive of Drew & Napier, 'to advise MAS on the implications of the legal issues raised by the lawyers acting in the Chapter 11 proceedings for Lehman Brothers'.

This follows Tuesday's warning by Minibonds trustee - HSBC Institutional Trust Services - that the unwinding of Minibonds may be challenged by lawyers involved in the bankruptcy proceedings over Lehman in the US.

Minibond series 1 and 5 to 10 of the notes have defaulted and will be unwound by three appointed receivers of the defaulted notes from PricewaterhouseCoopers (PwC) Singapore.

On Tuesday, the receivers said investors might have to wait at least two years or more for any resolution, given the legal complexities introduced by the notice from Lehman's lawyers.

MAS last month also called on Deloitte & Touche Corporate Finance to advise the central bank on the Minibonds fiasco. Deloitte & Touche's services have also now been extended.

'In light of recent developments, MAS will also be extending the appointment of Deloitte & Touche Corporate Finance to continue to provide independent advice to MAS,' the central bank said in the statement.

Read the full story in Friday's edition of The Straits Times.