Banksia investors welcome third payment

INVESTORS of failed non-bank lender Banksia Securities Limited will receive a third interim repayment of five cents in the dollar today. 

Ballarat debenture holder Keith Pitman said investors still wanted their full dollar, but the latest repayment was welcome news in the lead-up to Christmas. 

The initial shock and anger may have worn off, but pensioners and elderly people are still feeling the effects, he said.

Banksia Securities went into receivership in October  last year, owing more than $600 million to thousands of investors, mainly in regional Victoria, including many in Ballarat.

“Everyone would like their full dollar of course, but it’s far better than initially expected,” Mr Pitman said.

“We’ve approached politicians from both major political parties and hopefully we’ll get some assistance to make up the full dollar.

“But it’s really to make sure this doesn’t happen again.”

Mr Pitman said a class action against the directors, auditors and trustees was also under way.

Receivers McGrath Nicol said total repayments to investors now equalled 70 cents in the dollar.