Deutsche Bank has purchased the remaining loan book of former debenture-funded mortgage provider, Gippsland Secured Investments, which went into receivership near the end of last year.
The sale of the loan book and early settlements from the auction of real estate held by Riviera Properties, once GSI's largest debtor, means the next distribution to note holders will be between 50 and 55 cents in the dollar, likely late April, announced the trustees and receiver Adam Nikitins of Ernst & Young yesterday.
This will add to earlier distributions of 25 cents in the dollar.
Nikitins estimated the final return to note-holders at between 87 and 92 cents.
“The loan book sale is a very positive outcome for GSI note holders. Not only does it maximise returns but it also means we can accelerate the timing of our next distribution,” he said.
Receivers were appointed to GSI in September, after the Federal Court ruled a recapitalisation proposal was too complex, putting note-holders' funds of $143 million at risk.
The receivership will next focus on asset recovery, including collecting proceeds from the recently completed successful Riviera auction where more than 80 properties were auctioned, netting over $11.5 million for note holders.
