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
Advertising Standards Bureau slaps McDonald's for offering free fries vouchers to children at SPC Ardmona KidsTown.
Yarrawonga Football Netball Club senior footballer Jeremy O’Brien celebrated his 200th senior Ovens and Murray Football Netball League game against the Wodonga Bulldogs on Saturday.
Following a concerted effort by Merrigum Community Group to upgrade signage in the town, it was announced at last Monday’s community meeting that design of a new information sign, to be located near the bus shelter in Waverley Ave, has been completed.
LBU coach Ady Dohnt headlines the Cats' inclusions for tomorrow's clash with Huntly.
Rochester resident John Constable has received the latest vision scanner available, thanks to Rochester Lions.
100 days at Tongala Primary.
It's not everyday you get 'most sincere thanks' from the Queen - as a Seymour girl found out.
St Joseph's Jerilderie teacher Steve Jones has released an album with his band, Steve Jones and The Velvet Glove.
The district has shivered during the past couple of weeks with night temperatures falling below zero. For those prepared to brave the winter chill, Lake Eppalock offers stunning scenery and yellow wattle brightens district forests.
Black Dog ride participants meet up in Cobram before they burn rubber to beat the blues.
Deniliquin woman Georgia Henderson calls on Member for Farrer Sussan Ley to come out in support of same-sex marriage.
Wheat crops sown at the end of April to mid-May were two to three weeks early, increasing the risk of frost damage, the Finley Discussion Group’s meetings earlier this month heard.
John 'Jack' Roe remembered as a gentleman; battle-scared but a genuine, dignified man of integrity.
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.