ANOTHER payment is on the way to Border investors in the failed Banksia Securities financial group, just short of the first anniversary of its collapse.
Receivers McGrathNicol have announced a third repayment to debenture holders in Banksia, with the money due to be sent out yesterday.
This third interim repayment of five cents in the dollar takes total repayments so far to 70 cents in the dollar.
The previous repayment made was in May when McGrathNicol announced the proceeds of a sale of Banksia’s performing loan portfolio to Deutsche Bank.
This meant the payment was able to be made six weeks earlier than what was originally expected.
It had earlier been announced a general dividend of just 10 cents would be paid in May, followed by the sale dividend of 35 cents by June 30.
But the loan portfolio sale allowed for the 45 cents in the dollar payment, taking the repayments at the time to 65 cents.
An Albury branch was one of eight to close when Banksia went into receivership on October 25 last year, owing $660 million to about 3000 investors.
It is not known how many investors were on the Border, though several reported initial losses of up to $100,000.
Receiver Tony McGrath said the was no change to McGrathNicol’s overall repayment guidance of 80 to 85 cents in the dollar.
Mr McGrath said that meant further distributions of 10 to 15 cents in the dollar were expected, though he could not say when that would happen.
He said the timing of future repayments to Banksia debenture holders was linked to the success of the Banksia Mortgage Fund sale.
Another factor was recovering money from the realisation of some loans.
An update was sent yesterday to all debenture holders covering a range of issues, among these an ongoing class action over Banksia’s collapse.