The receivers of Strategic Finance say they'll make one final payment to investors, lifting the total payout to 21 per cent, before calling time on the seven-year saga.
To date, distributions in the receivership have been 20 cents in the dollar, or $73.5 million, for the 10,000 secured debenture investors who had invested $367.8m in the failed company. Receivers John Fisk and David Bridgman of PwC said in their 15th report on Strategic and associated entities that their revised estimate for the final distribution is up from a previous range of 20-to-20.7 per cent. No distribution was made in the latest six-month period.
"The receivers intend to shortly make one further distribution to secured debenture holders, following which the receivership will be brought to an end," they said. At the time of their appointment in March 2010, Strategic's major remaining asset was its portfolio of property loans.
In the receivers' previous report in May this year they advised that there was one material remaining loan where the underlying property wasn't under contract or subject to any arrangement for sale. The loan is a second mortgage on a property "and there are substantial amounts owing to the first mortgagee". The receivers said no funds were expected to be available and they had assigned Strategic's interest in the loan to the receiver of the borrower.
While that won't result in further realisations for Strategic, it "allows the receivership of Strategic to be brought to an end," they said. A final payment of $100,000 plus interest was received from a guarantor of a loan, they said.
