BANKSIA investors will get a pre-Christmas pay out of 20 cents in the dollar on their debentures.
Banksia Securities Limited receivers and managers McGrathNicol said they would be making their first distribution to investors today and "estimated a total repayment to BSL debenture holders of between 50 and 65 cents in the dollar".
"We hope the first distribution provides some initial relief to investors following the failure of BSL," Tony McGrath said.
"The loan recovery processes we have put in place aims to ensure further distributions are paid as quickly as possible," he said.
A report was also sent to debenture holders today outlining the company's performance and an analysis of their loan book.
"The receivers attribute the failure of the companies (BSL and member company Cherry Fund) to several factors including a general reduction in property values, difficult credit market conditions, inadequate provisioning in the loan books and a mismatch between the timing of debentures due for repayment and the recoverability of borrowers’ loans," Mr McGrath said.
A full copy of the report will be posted on the McGrathNicol website today.
Investor meetings will be held next Friday in Ballarat, Shepparton and Kyabram and investors are encouraged to register for the meetings by calling 1800 722 079.
The information sessions can also be viewed as a webcast at the McGrathNicol website the following day on December 15.