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
Mooroopna Park Primary School principal Hayden Beaton has wasted no time improved his former school's student numbers.
The Yarrawonga Chronicle and Travel and Cruise Yarrawonga are offering shoppers a chance to win an incredible cruise package this summer.
Last week Victorian Collections passed a major milestone, with the 50000th historical object record from the state’s heritage collections uploaded to the site.
Echuca branch of the Ulysses Club is carrying out its annual toy run on November 29.
Rochester Secondary College student Georgia Mundie will perform at an Equitana exhibition in Melbourne.
Fourteen parties and 37 candidates will contest the Northern Victoria Region for the Victorian upper house at the November 29 election, with the Democratic Labour Party (DLP) claiming the top billing on the ballot paper.
Playgroup of the Month for November.
Andrew Richardson and Matt Jackson have been appointed co-coaches of Finley's senior football side.
Two new Neighbourhood Safer Places for the Pyalong and Tooborac communities have been announced.
Runners from the Sri Chinmoy Peace Oneness-Home Peace Run visit local students to share message of goodwill.
Deniliquin’s Luke Harrington is hoping to start a horse riding club for people with a disability.
South African course builder Brian Lavery, now based in Melbourne, set a testing track for the Hunter Group World Cup Showjumping Qualifier on Saturday that brought some of the sport’s big names undone.
Scott Upston had a decorated career as a paralympic coach before moving to Benalla this year.
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.