Receivers for collapsed investment firm Banksia Securities Ltd have faced a barrage of questions at a public meeting attended by more than 600 people.JOHN LEWIS December 15, 2012 4:50am
Receivers of collapsed financial firm Banksia Securities Ltd faced a barrage of questions from hundreds of worried investors at Kyabram yesterday.
More than 600 debenture holders packed Kyabram P-12 College hall to hear McGrathNicol partner Tony McGrath update them on the receivership process and answer questions from the floor.
Meetings were also held at Shepparton and Ballarat.
Banksia Securities, a subsidiary of Kyabram-based non-bank lender Banksia Financial Group, went into receivership on October 25 owing $660
Investors’ moods at Kyabram yesterday were polite but forceful in demanding answers to why the company collapsed, who was to blame and how much of their money they could expect back and when.
Mr McGrath said the company’s failure could be traced back to the start of the global financial crisis ‘‘three, four, five’’ years ago, and its lending practises had not kept pace with changing market conditions.
Questions were raised about the expense of the receivership process and the necessity of sending out high-gloss reports to each account holder, with some households receiving more than one report.
Mr McGrath said it was a matter of balance.
‘‘We have to weigh up costs against getting information out. We are required to post this,’’ he said.
Asked later about $1.6
‘‘On balance, I’m comfortable with the way we charge,’’ he said.
Other investors asked if Banksia directors were still being paid.
Mr McGrath replied it depended on whether the holding company they worked for was still active.
Asked why the directors did not attend yesterday’s meeting, Mr McGrath said ‘‘it was their call not to be here. I didn’t especially invite them’’.
Mr McGrath said he was ‘‘very confident’’ investors would eventually receive between 50 and 65 cents in the dollar.
Banksia Securities investors have already received an initial distribution of 20 cents in the dollar.
One woman asked why her parents had not received any payment from another failed Banksia Financial Group fund, Cherry Fund Ltd.
A receivers and managers’ report predicted Cherry investors could expect 55 to 70 cents in the dollar.
Mr McGrath replied that Cherry investments were mostly tied up in a separate company called Banksia Mortgage Fund, which was still being administered by directors.
‘‘I do not have control over Banksia Mortgage Fund .
Mr McGrath later said ‘‘there were some issues around the stand-alone mortgage fund, with investors’ money being siphoned into that fund’’.
Asked about the possibility of legal action against directors and auditors, Mr McGrath said it was early days.
‘‘We all need to be better informed before anyone can make that decision,’’ he said.
He said he was hopeful that 75 per cent of receivership matters could be resolved by September next year.
‘‘But these things do play out over a period — some assets might take another year or two to finalise,’’ he said.
Mr McGrath said there was a ‘‘high degree’’ of engagement with state and federal governments concerning the Banksia collapse.
He also said McGrathNicol was in ‘‘constant dialogue’’ with the Australian Securities and Investments Commission about Banksia Securities.
Some asked receivers McGrathNicol how they could organise a class action.
They were told the receivers would not stand in the way of any action taken by debenture holders.
Tyson McKenzie is returning to Congupna as senior coach as The Road seeks to turn around their fortunes on the football field.
The Murray River’s most unique event, the Murray Quad, is back on and just around the corner.
Tatura Fire Brigade volunteers are gearing up for a busy summer period this year.
SNAKES will be coming out of hiding as the weather warms up.
OUR Lady of the Sacred Heart Elmore was a sea of colour earlier this month for Footy Colours Day.
KYABRAM and district ladies have once again been encouraged to grab their mums, sisters and friends and take part in the annual Kyabram Girls Night Out.
Seymour A and B-grade in season decider
Extensive rainfall in the Southern Riverina is having a negative impact on farming.
When Pyalong Primary School does something, it does it well. Here are the students all dressed up for the school's recent Roald Dahl day to celebrate the 100th anniversary of the author’s birth on September 13, 1916.
Yarroweyah's Katie Anderson will be heading to Wisconsin in the United States after winning the Dairy Youth Travel Scholarship.
Skipper claims second B&F in thrilling count
Tuesday, August 16
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.