INVESTORS in the failed Banksia Securities Limited (BSL) finance company will receive a five cents in the dollar payment today, lifting the return received so far to 70 cents in the dollar.
Banksia’s receivers McGrathNicol said the five-cent payment was part of its earlier forecast that investors would receive a total of 80 to 85 cents in the dollar.
Receiver Tony McGrath said the timing and amount of future repayments to BSL debenture holders was directly linked to the success of the sale process for Banksia Mortgage Fund (BMF).
It was also dependent on further sales of BSL’s remaining poorly-performing loans, he said.
Both BSL and BMF were part of the Banksia Financial Group. BSL also had a financial interest in BMF.
BMF had remained solvent after BSL’s collapse last year but applied a few months ago to be wound up.
McGrathNicol said it would release a brief receivership update to investors on its website at 9am today.
The update would also be posted to investors.
The receivers said the update would cover the sale of BSL’s performing loans and the release of BSL funds held by a third party, the sale process for BMF loans and the sale of BSL’s poorly-performing loans.
The update would also give details on the receivers’ investigations and public examinations of a number of BSL board members and managers into the cause of BSL’s collapse last year.
Information would also be provided about a statewide committee that represents BSL investors and a separate legal class action launched by investors against BSL and its directors.