Australia: Thousands Have Their Cash Frozen After Collapse Of Banksia Financial Group – Banksia Investors Unlikely To Have All Money Returned

Thousands of Victorians have their cash frozen after collapse of Banksia Financial Group (The Australian, Oct 26, 2012):

Thousands of investors are facing hundreds of millions of dollars in losses after the shock collapse.

Julie and Les Bailey, former dairy farmers from Numurkah, say they have potentially lost several hundred thousand dollars invested in Banksia superannuation.

“We have lost all our super,” Mrs Bailey said from her Queensland home.

Banksia investors unlikely to have all money returned (Sydney Morning Herald, Oct 26, 2012):

Banksia Securities investors will receive some of their investment in the failed non-bank lender but will have to wait more than a month to find out how much, receivers told investors late this afternoon.

Receivers McGrathNicol said investors will receive “a meaningful return on their investment” but are unlikely to recover all of their funds.

“Currently, Banksia has substantial liquid assets. Given this substantial liquidity position, the Receivers will immediately explore how best they can start making payments to Debenture Holders,” McGrathNicol stated. It will update debenture holders at a meeting within five weeks.