Banksia Securities Collapse, Rural Savings Threatened

In the aftermath of Banksia Securities’ collapse, thousands of Victorians are nervously waiting for news on their savings. The collapse has put about $660 million in savings at risk.

Reports have indicated McGrathNicol took over Banksia Securities. Tony McGrath, Matthew Caddy, Joseph Hayes, and Robert Kirman have been named by Banksia’s trustee as managers and receivers.

Victorian farmers are just some of Banksia’s customers. It is believed that McGrathNicol has frozen redemptions and interest payments following the collapse.

The company owes some $660 million to different investors, including borrowers. The funds were used to finance a variety of real estate purchases.

According to Tony McGrath, they are now in the process of reviewing Banksia’s financial standing, including its security properties and loan book. He added that the primary concern is to make sure that debenture holders’ interests are protected.

McGrath also said that they are closely working with the trustee and are regularly communicating with debenture holders.

Meanwhile, Daving Grbin said the trustee is focusing its attention to ensure that debenture holders are treated with fairness and equality. Grbin is the Trust Company Limited’s corporate client services group executive general manager.

McGrathNicol also said it will provide more updates in the coming days.

About three thousand investor accounts have been affected by the collapse. Banksia’s clients also include rural businesses.