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Investors championed

A large public meeting of investors of the failed Banksia Securities company have voted to establish a support committee for debenture holders.

January 24, 2013 5:00am

More than 350 people attended the meeting at Kyabram and most supported the idea of a committee suggested by Peter Hann, Doug Crow, Peter Nelson and Don McKenzie.

Mr Hann said the group had contacted receiver McGrathNicol and hoped to form an investors’ committee which would have the opportunity to liaise with the receiver and put across the investors’ point of view.

Mr Crow said the idea came from an opportunity provided by the receiver’s representative at the December 14 information session held in Shepparton.

He said the group had a particular concern about the nominated rate of return of 50 to 65 cents in the dollar from sales of the Banksia loan portfolio and wanted to ensure any sell-off of loans did not become a firesale.

He then quoted figures to explain why the group felt a higher return should be expected from the performing loans segment of the Banksia loan portfolio.

‘‘Our group has great difficulty understanding why this segment of the loan portfolio will not command a premium inquiry,’’ he said.

Mr McKenzie said the level of support was confirmed after the meeting, with 317 people signing up in support.

‘‘There were people at the meeting from places including Shepparton, Nagambie, Echuca, Nathalia and Numurkah as well as those from nearer towns,’’ he said.

Two representatives from McGrathNicol — Matthew Caddy and Ashley Johnson — attended the meeting and Mr Caddy fielded a number of questions from the audience. Mr Caddy said the committee would be selected as a representative group and would help provide a two-way communication path.

‘‘The committee would be there to represent you and assist but it cannot make decisions for you and also the receiver does not report to the committee,’’ Mr Caddy said.

The audience also heard from Shepparton-based sol- icitor Rob Crow who outlined the process and current status of the class action writ lodged on behalf of all Banksia and Cherry Fund investors against the companies and its directors, trustees and auditors.

He said more information about the class action was expected to be available within the next few weeks and all investors would receive details in writing.

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