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Banksia investors to get first payment


Investors will be getting an early Christmas present with an initial payment from troubled Banksia Securities to be handed back.

Banksia Securities, a subsidiary of Kyabram-based non-bank lender Banksia Financial Group, went into receivership last month owing $660 million to about 15000 investors, many of whom live in regional Victoria.

But receivers McGrathNicol announced on Wednesday that it would make a first payment to Banksia Securities Limited (BSL) debenture holders before Christmas.

The payments will represent only 10 to 15 per cent of debenture holders' total investment, McGrathNicol said in a statement.

"As BSL had substantial funds invested in liquid term deposits with major banks, we intend to make an early first payment to debenture holders and will aim to do this prior to Christmas," receiver Tony McGrath said.

A spokesman for McGrathNicol added the receivers would give notice of any further payments at future meetings.

Four information sessions for debenture holders will be held in Victoria, in Ballarat and Shepparton, on December 14.

Additional payments to investors will be made, though the receiver has yet to finalise a schedule and the exact amounts.