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.
Goulburn Valley Football League under-18 interleague squad is packed with talent and will give coaching staff headaches when it comes to trimming players.
The Yarrawonga Pigeons scored a 20 point victory over the Myrtleford Saints at the JC Lowe Oval in Yarrawonga on Saturday.
The Aboriginal and wider community is mourning the death of revered Bangerang Aboriginal elder, Uncle John ‘‘Sandy’’ Atkinson.
A WORKING group has been formed to tackle Moama’s housing problems.
ROCHESTER’S mums and bubs fitness class is only in its third week but it has already doubled its enrolment numbers, blowing organisers’ expectations out of the water.
Tongala Football Club lost to Rumbalara in the Murray Netball League on Saturday by 14 points.
Four generations of Comi girls this Mother's Day
Berrigan Shire councillor Daryll Morris says he has been sickened by some of the vitriol and personal attacks to surface since the council’s proposal to redevelop Finley’s Memorial Hall and School of Arts site was revealed in October last year.
DESPITE criticism from within the community over a perceived lack of use, the O’Keefe Rail Trail has enjoyed good traffic over the past couple of weeks, with more to come.
Members of a Cobram social group have encouraged women to become a part of community groups, committees and boards.
School fundraises for student with leukaemia.
ix industry and local government representatives, five water services committee members and two community members have been appointed to the new Connections Stakeholder Consultative Committee.
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.