Banksia Transferred Millions Before Collapse

Non-bank Banksia appeared to have lent close to $11 million to Securities Haldco. The latter borrowed $10,900,000 from Banksia on June 30, 2011.

Securities Haldco is Banksia’s parent company. It owns 11 different businesses, including Banksia Financial Group.  Top executives of Banksia like Peter Keating and Patrick Godrey also own some 60 percent of Securities Haldco Limited.

Since Banksia’s collapse late October, McGrathNicol has taken over the company. In the process, some $660 million worth of investments have been frozen. Banksia has about 3,000 investors, including Victorian farmers.

Tony McGrath said interest payments were also put into a halt pending the review of Banksia’s documents. McGrath also said the receiver company is investigating the loan given to Securities Haldco Limited.

Early investigation, however, said loans are a regular thing in Banksia’s business operations. It is also most likely that Banksia investors would receive a parcel of their investments but it remains to be seen how much they would get.

Initially, investors were informed that they would receive 10 to 15 cents for every dollar they invested.  Investors are hopeful that they would get back their investments in time for Christmas.