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
A man has been arrested and charged following an incident in Toolamba on Saturday morning where a firearm was allegedly discharged.
More than 2200 people have signed up to show their support for a campaign to have the green route chosen for the new Yarrawonga Mulwala bridge.
Members of Murchison Book Club are hosting a literary lunch with Vivien Achia, author of Marrying Italian — When Love is Not Enough.
Families and tourists gathered on the banks of the Murray River on Sunday night for the annual sail past and fireworks display.
Painter Ben Winspear and Scott Wileman will create new works as the public look on during the at Rochester Art Exhibition.
Kyabram Bombers have the chance to beat Rochester under light for the first time this Friday evening.
Lions star recruit had a tough introduction to the GVFL.
Tocumwal's Don Elgin is aiming to compete at the 2014 Commonwealth Games in Scotland
Eighty residents at a forum determined the Heathcote Community Plan was on track but need some fine tuning.
Cobram-based students host educational forum on crystal methamphetamine.
Senior state minister Adrian Piccoli reaquainted himself with Deniliquin yesterday, leaving Deniliquin Counil hopeful it has an ally in him.
With his blue eyes and snow-coloured coat, Nanneella horse Sinatra has looks worthy of a fairytale.
Fourteen-year-old Benalla girl Jaimee Linke will launch her debut novel next month.
Discover unbelievable local deals from local businesses every week in the Goulburn and Murray Valley area with Leapon.com.au!
Search properties for sale or rent across North Central Victoria and Southern NSW. Visit your local website for local homes....
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.