MANY Banksia investors remained deeply worried about their financial prospects despite news of another repayment from receivers by early May, advocate Denise Brailey says.
Receivers of collapsed non-bank lender Banksia Securities Limited yesterday said they would accelerate the timing of returns to Banksia debenture holders, with another repayment by early May of at least five cents in the dollar.
This was to be followed by another significant further distribution, in the order of 20 to 35 cents, before June 30.
Ms Brailey, president of the Banking and Finance Consumers Support Association, said while it would come as some relief, the announcement fell far short of expectations.
“I don’t think they’re going to be over the moon,” she said.
“One thing that worries them deeply is whether this is all they’re going to get.”
She said many investors were having to rearrange their entire lives, having lost not just their savings but their income streams in Banksia’s collapse.
Ms Brailey said she had been in touch with a number of investors who still felt a lot of uncertainty.
She said the Banking and Finance Consumers Support Association was planning a series of meetings this April in Victorian regional cities, including Ballarat, to create a forum for their concerns.
Meanwhile, receivers said they expected to accelerate future payments to debenture holders after generating strong interest in the lender’s $270 million lending book.
Receiver Tony McGrath said while they were unable to comment on a likely sale price for the performing loan portfolio, which has a face value of $270 million, he was confident of a positive sale outcome based on the strength and calibre of the interested parties.
The receivers retained their forecast overall return for BSL denture holders of 50-65 cents in the dollar, but expected the lower end to be exceeded.
Mr McGrath said the receivers were still determining if there were any actionable claims against third parties that could increase returns to debenture holders.
“As part of this process, we are undertaking a detailed review of BSL’s records and disclosures, related party transactions and advances and the manner in which key parties such as directors, officers, auditors and other advisers have discharged their duties,” Mr McGrath said.