Banksia debenture holders expecting higher than forecast returns

The receivers of struggling Banksia Securities Ltd say overall returns are likely to exceed initial estimates



The receivers of Banksia Securities Ltd (BSL) have announced that overall returns to debenture holders are likely to exceed initial estimates.

Banksia appointee, Tony McGrath, says the prediction takes into account indicative bids received during the loan portfolio sale process and an increased knowledge of the loan book in general.

In the Receivers’ circular sent out in early February, repayment guidance for BSL debenture holders was revised to the ‘mid-to-high end’ of the receivers’ original range, meaning the repayment estimate was close to 65 cents in the dollar.

“As a result of our current loan portfolio sale expectations, and our increasing knowledge of the remaining loan portfolio, we will shortly be in a position to provide updated repayment guidance to debenture holders,” says McGrath.

“The revision can be announced following the conclusion of the loan portfolio sale process, which we expect will occur during May, 2013. However, for present purposes, we expect that the revision will result in improved total repayments of between 70 cents and 80 cents in the dollar for BSL debenture holders.”

The Trust Company, as trustee, welcomed the increased guidance.

David Grbin, group executive general manager of corporate client services at the Trust Company, says it’s the trustee’s role to approve asset sales.

“We are working closely with the receivers to ensure the best outcome for debenture holders. We welcome this updated guidance and will continue to closely monitor the process. Our on-going priority remains the best interests of debenture holders and ensure the level of engagement and communication continues.”




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