Latest Banksia repayment an early Christmas gift

BANKSIA investors have received an early Christmas present with a fourth repayment to be released next week, more than a year after the building society collapsed.

Eight cents in the dollar will be repaid to investors on Monday following the successful sale of the loans within the Banksia Mortgage Fund to Deutsche Bank.

The latest move means Banksia investors will receive 78 cents in the dollar by next week, far higher than early estimates of 40 to 50 cents following the non-bank lender’s collapse last year.

It is expected investors will eventually receive between 80 to 85 cents in the dollar, although no set date has been made for the next repayment.

McGrath Nicol spokesman Tony McGrath said the trustee and receivers would update investors during the first three months of next year.

“We are closely monitoring our forecasts of returns from the remaining (Banksia) assets, which are now primarily impaired loans,” Mr McGrath said. 

“We consider the current guidance of 80 to 85 cents a good guide, with a mid-point of that range being a very realistic target.”

Mr McGrath said the trustee and receivers had endorsed the appointment of an independent adviser to keep in touch with the receivers on Banksia claims.

Banksia Securities collapsed in October 2012, freezing $600 million in funds held by investors largely based in the Goulburn Valley and the Western District.

A support group was established earlier this year in Warrnambool and more than 100 investors attended a meeting with legal advisers in March to discuss repayment options. The small non-bank lender was established in Kyabram nearly five decades ago.

Smartphone
Tablet - Narrow
Tablet - Wide
Desktop