FAILED lender Banksia made an $11 million loan to its parent company before it collapsed owing $660 million to investors.
Receivers working to claw back money for Banksia's 15,000 investors are trying to recover the loan, which was made to a related company that is majority-owned by Banksia's directors and executives.
READ MORE: Banksia documents in the bin
McGrathNicol has confirmed to the Herald Sun it is seeking to recoup the money from Securities Haldco Limited, the parent company of the 11 businesses which made up The Banksia Financial Group.
"In addition to its loan book, Banksia Securities Limited has other assets, including this loan to Securities Haldco Limited," receiver Tony McGrath said.
"As part of the receivership we are investigating how this loan may be collected and we are in dialogue with Securities Haldco in that regard."
Read more at the Herald Sun.
