Receivers: Further Repayment to Debenture Holders
December 1, 2006
Receivers Announce Further Repayment to Debenture Holders
Brendon Gibson and Grant Graham, Receivers of Western Bay Finance Limited, have announced a second capital repayment to debenture holders.
"In our last release we announced the sale of a significant portion of the loan book to Finance Now. We are delighted now to be able to announce that the balance of the Company's loan book has been sold to a syndicate of investors" said Mr Gibson. "That sale will allow us to make a further capital repayment to debenture holders in early December. Following that payment we will have returned $37.5 million to debenture holders."
"At the date of the Receivers' appointment on 3 August, debenture debt stood at $48.5 million. Return of 77% within four months is a very pleasing result from our perspective", said Mr Gibson. "This is the vast majority of the assets now realised and we will be realising the balance of the assets over the next 3 to 4 months. Accordingly we expect the final pay out to debenture holders will be available in mid 2007. We are currently projecting this will take total returns to debenture holders to in excess of $39 million, or between 81 and 82 cents in the dollar on debt as at receivership. We are very pleased that recoveries will therefore exceed even the upper range of our initial estimate of 75-80 cents".