Receivers for Banksia Securities have announced investors will soon receive a payment of 20 cents in the dollar.December 8, 2012 4:35am
The receivers of stricken finance firm Banksia Securities yesterday announced the first payment was being made to investors — at a rate of 20¢ in each dollar.
McGrathNicol has estimated a total repayment to debenture holders of between 50¢ and 65¢ in the dollar.
‘‘We hope the first distribution process provides some initial relief to investors following the failure of Banksia Securities Limited,’’ receiver Tony McGrath said.
‘‘The loan recovery processes we have put in place aims to ensure further distributions are paid as quickly as possible.’’
A report released to investors yesterday included information on estimated total returns.
It contains information on a range of matters including the historical performance of Banksia and Cherry Funds, an analysis of the loan book and events leading up to the failure.
‘‘The receivers attribute the failure of the companies to several factors including a general reduction in property values, difficult credit market conditions, inadequate provisioning in the loan books and a mismatch between the timing of debentures due for repayment and the recoverability of borrowers’ loans,’’ Mr McGrath said.
He said in addition to recovering loans and making repayments to debenture holders, the receivers were now focused on further investigating the reasons for the companies’ failure.
Further key points from the report include Banksia had outstanding commitments to debenture holders of $663
It said both Banksia and Cherry Funds reported profits in recent years, but as certain loans were non-performing for some time and provisions were insufficient, both companies, particularly Banksia, most likely incurred substantial losses in recent years.
Loan portfolios of the companies will be realised through a combination of refinancing, repayment, loan portfolio sales and enforcement action, such as taking possession of and realising property.
A second payment to Banksia investors is expected before June 30 next year.
A statement from McGrathNicol yesterday said the amount of distribution is dependent on progress achieved with realisation of loan portfolios.
Cherry Funds owes investors about $10
It is anticipated to make a total repayment of between 55¢ and 70¢ in the dollar to its debenture holders.
At this stage assets are not in a liquid state and there will not be an immediate distribution.
It's challenging out there, but the umpires who will officiate at this year's GVFL grand finals will take it all in their stride.
The Yarrawonga Pigeons A grade netball team has fallen agonisingly short of winning the 2015 Ovens and Murray Premiership against Wodonga after staging a great final quarter fightback.
There is a new police sergeant in Mooroopna and his name is Gerard Warrin.
FORMER Echuca basketballer Staci Richardson was just minutes away from crossing paths with the US gunman who shot and killed 10 people and injured seven at an Oregon college.
ROCHESTER and District residents have known for a long time they have a great health service.
Bombers prepare for GVFL Grand Final
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.
A NASTY run-in with a kangaroo on the Northern Hwy between Melbourne and Echuca has convinced one regular traveller on the road the question of a cull needs to be addressed.
Three Cobram teens have been arrested by police after they allegedly stole tractors from Cobram and Tocumwal and caused about $30 000 in damage.
Volunteers of the two-legged and four-legged variety gathered in Deniliquin on September 18 for a Deniliquin Riding for the Disabled Association branch training day.
The Resource Manager for northern Victoria today announced increased seasonal allocations in the Murray, Goulburn, Broken and Loddon irrigation systems.
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.