Banksia Security Limited shareholders have started receiving back their installments on their funds lost by the company but it has been known that the investors will only receive between 50c and 65c for a dollar worth of investment.
The crash of the company had left 15,000 investors with a total loss of $660 million. Investors manly concentrated in northern Victoria have expressed anger and frustration over the prospects of losing about half of their investment, which in many cases are the life savings or retirement funds.
There are rumors around Echuca and Kyabram, where many Banksia clients were based, that a return of about 90c is possible. A return of funds is likely for the BSL debenture holders before June 30 next year indicating that the exercise of returning funds will go on into the coming year.
According to a new report, the fall of property investment values was the major reason behind the collapse of the Banksia group collapse. The report cited reasons like general reduction in property values, difficult credit market conditions, inadequate provisioning as well as an inadequate schedule for repayment to debt holders and receiving funds from borrowers as the main reason for the company's fall.
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