Banksia Investors to Get ‘Meaningful’ Amount

In the aftermath of the collapse of Banksia Securities, receivers are telling country investors that they would get a ‘meaningful’ amount of their investments.

Based on records, investments in Banksia totaled about $665 million.

McGrathNicol has taken over Banksia Securities and is currently reviewing the collapsed company’s loan and business portfolio. According to sources, acting chief executive officer Warren Shaw is helping in the review.

McGrathNicol is also preparing plans to return investors’ money. Under government guarantees, investors’ funds are not included in the coverage but sources say that McGrathNicol is doing everything to help investors.

Premier Ted Baillieu has issued a statement saying that the collapse of an issue of ASIC and Commonwealth. He, however, said that it remains a big concern both for the government and Victoria.

He also advised Victoria to work with the federal government should it requires further emergency support.

Victorian farmers are just some of the investors in Banksia Securities. Banksia shopfronts are also expected to close because of the collapse.

McGrathNicol expressed confidence that investors would get some of their investments back. It reiterated that Banksia still has significant liquid assets.

McGrathNicol is also preparing plans to make payments to debenture holders.

Documents showed that Banksia has about 1,000 loans extended to farmers, small companies, and families residing in Victoria.

Banksia’s collapse came as a surprise given its history. The business was established by Patrick Godfrey in 1968 as Kyabram Housing Investments.