More funds returned to Banksia investors

INVESTORS owed $660 million by the failed Banksia Securities will receive an early repayment as the sale of the business progresses ahead of schedule.

Receiver McGrathNicol said the sale of Banksia’s performing loan portfolio had enabled them to make a further repayment of 45 cents in the dollar on Friday, May 17.

Receivers initially said a general dividend of 10 cents in the dollar would be paid in May, followed by another 35 cents in the dollar by June 30.

The funds will bring total repayments so far to Banksia investors to 65 cents in the dollar.

Receiver Tony McGrath said they were still expecting investors to recoup a total of 80 to 85 cents in the dollar.

McGrathNicol also announced investors in Cherry Fund Limited, another failed investment fund linked to Banksia Financial Group, would receive a dividend of 32 cents in the dollar from cash holdings.

The sale of a portfolio of CFL Loans is expected to result in a further distribution by June 30, the receiver said.

“Based on current expectations, the receivers estimate a further return to CFL debenture holders of 30 cents in the dollar, meaning total returns to CFL investors could be up to 80 cents in the dollar,” it said in a statement.

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