A commercial non-bank lender has entered into receivership, after it was revealed the company owed more than $660 million to investors.
This morning, Banksia Securities announced it had appointed McGrathNicol as receivers for the company at the request of the board.
According to a statement by McGrathNicol, Banksia owes approximately $660 million to investors and advanced these funds to borrowers primarily to finance real property purchases.
Control of the business and the assets of Banksia now rests with the receivers and managers who will be working in close consultation with the Trustee to ensure the interests of debenture holders are being protected.
Interest payments and redemptions have been frozen as at 25 October 2012.
One of the receivers, Tony McGrath, said McGrathNicol was currently in the process of conducting an urgent review of Banksia’s financial position, loan book and underlying security properties.
“Our primary concern is to ensure the interests of debenture holders are being protected. In this regard, we will be working closely with the Trustee to ensure debenture holders receive regular communication and BSL’s assets are managed in a manner to maximise returns,” he said.
Regular updates will be provided to debenture holders as the receivership progresses.