Banksia investors to get another 8c in dollar on Monday

UPDATE 1.30PM: Banksia Securities Limited debenture holders will receive a fourth interim repayment of eight cents in the dollar on Monday.

Trustee The Trust Company and receivers McGrathNicol said the latest distribution would take the total return to date of 78 cents in the dollar.

A statement from the trustee and receivers said the distribution payment followed the sale of loans in the Banksia Mortgage Fund to Deutsche Bank.

As a result of the sale, BMF investors will receive their entire principal and interest calculated to 31 October 2013, and BSL received a substantial payment to sell its exposure to the fund, the statement said.

The Trust Company executive general manager corporate client services David Grbin welcomed the fourth repayment.

“The Trustee is pleased to see the successful settlement of the BMF loan portfolio sale and the resultant distribution to debenture holders,'' Mr Grbin said.

''We will continue to work closely with McGrathNicol as receivers, to ensure further timely repayments and the finalisation of the receivership in an efficient manner.''

The statement said there was no change to the overall guidance of 80 to 85 cents in the dollar, meaning further repayments of two to seven cents in the dollar were expected.

McGrathNicol spokesman Tony McGrath said the trustee and receivers would revisit the overall guidance as remaining issues developed and report any changes in the first quarter of 2014.

“We are closely monitoring our forecasts of returns from the remaining BSL assets, which are now primarily impaired loans. We consider the current guidance of 80 to 85 cents a good guide, with a mid-point of that range being a very realistic target,” he said.

The statement said after public examinations earlier in the year, the trustee and receivers continued work on potential litigation or mediation of the claims BSL had against various parties, arising from its failure in 2012.

''To ensure the committee of debenture holders are appropriately briefed on the options available, the trustee and receivers have endorsed the appointment of an independent advisor, to liaise with the receivers on BSL claims, and advise the committee on those options,'' the statement said.

Mr McGrath said ensuring debenture holders received clear advice to assist in addressing the complex litigation options facing Banksia was an important part of the recovery strategy.

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