Tony McGrath told Banksia Securities Limited debenture holders improper valuing and the Global Financial Crisis were keys to its collapse in OctoberTRENT HORNEMAN December 17, 2012 4:55am
Receiver Tony McGrath, a partner in McGrath Nicol, addresses the media at a press conference after an information session for Banksia Securities debenture holders.
Receivers in charge of managing Banksia Securities Limited have placed the blame at its directors and auditors responsible for reviewing its books.
Tony McGrath, a partner of McGrathNicol, told about 600 debenture holders at a meeting in Kyabram on Friday that Banksia Securities did not have enough provisions to cover its loans.
He said improper valuing of its assets and the lingering impact of the Global Financial Crisis were also key factors behind the collapse.
Banksia Securities went into receivership on October 25, with about $650
Mr McGrath told investors he was confident investors would receive at least half of their money back.
‘‘I am confident with bottom end return of 50 cents in the dollar, ultimately my view is that 65 cents is most likely the top end of the outcome,’’ he said.
‘‘It is early days, we wanted to put a projection out there. It is much better to do that than not. To be able to do that within seven weeks is something we are pleased with.’’
Mr McGrath said investors should receive 75 per cent of their returns by September, but warned it could take up to three years for the receival process to completely wind up.
He expected the Australian Securities and Investments Commission would investigate the collapse and hinted at legal action against Banksia’s directors and auditors.
Mr McGrath said there were many factors to consider before launching legal proceedings.
‘‘In a receivership the size and complexity of Banksia, determining who is at fault and whether or not you can sue is a checklist item .
Mr McGrath told investors that suing directors and auditors would depend on their insurance coverage and ability to meet claims.
‘‘We all need to be better informed before making the decision, we’ve mentioned we need to complete our investigation. The key targets
‘‘That might come down to the extent of insurance.
‘‘It will take a bit of time. The risks are high in litigation, it takes longer than you want it to take and there are some strange steps on the journey.’’
Mr McGrath also answered questions from debenture holders, with much of the criticism focussed on the role of directors in the collapse and the amount of money McGrathNicol has charged Banksia trustees.
Mr McGrath said his company had already racked up a bill of $1.3
Shepparton golfer Kyle Michel has set course records at Kialla and Mooroopna golf clubs in the past three weeks.
Yarrawonga Pigeons dynamo Craig Ednie has won his third consecutive and seventh in total Chronicle Award after another brilliant season in the Ovens and Murray Football League.
It has been a successful year for Bega Cheese, which reflects on Tatura Milk Industries, with chair Barry Irvin announcing recently that Bega Cheese’s normalised earnings before interest, tax, depreciation and amortisation was $55.7 million and normalised profit after tax of $22 million.
FORKLIFT driver Hayden Moore has a hairy issue, and a lofty ambition.
MORE than 50 years of regulation have taken their toll by reversing the natural flow patterns of the Campaspe.
CFA called to farm fire
Hundreds flock to Avenel to learn a thing or three.
Tocumwal Lions Club has plans to purchase the Bowling Club site for an aged care facility, which will only happen if the merger between the Tocumwal bowls and golf clubs proceeds.
THE Heathcote community is readying itself for the official opening of the Heathcote Health Primary Care redevelopment.
Three Cobram teens have been arrested by police after they allegedly stole tractors from Cobram and Tocumwal and caused about $30 000 in damage.
Rhinos make strong impression in MVCA’s division one comp.
Despite the hot and windy weather making it a rough start to last week’s Elmore Field Days, numbers on the third and final day were strong, event organiser Sam Watkins said.
Benalla banded together to raise $2000 for the Abolishing Injustice in the 21st Century (A21).
The News magazines are online - read high quality magazines in your time. Check in regularly for the latest editions.
Riverine Herald's well regarded locally produced magazines. They're now online, so you can read them whenever and wherever you like.
Search for published and unpublished photos from McPherson Media Group newspapers and magazines. All our photos are available to purchase.
Place an advertisement in any one of McPherson Media Group's local newspapers.