A final distribution of an estimated $18.9 million is set to be made by Banksia Securities Limited in June, according to a circular from the Banksia Securities Limited special purpose receiver John Lindholm, which will go out to all debenture holders.
This amounts to about 2.9 cents in the dollar to be paid to each debenture holder of the financial company, which collapsed in 2012.
This final distribution by receivers will bring the recoveries for debenture holders to about 94.4 cents in the dollar of the principal amount invested.
The money is expected to be paid on June 12, according to the circular to be sent to investors.
The final payment comes 14 years after the collapse of the Kyabram-based company, and three years since the last payment was made.
At the time of the most recent payment, in June 2021, investors had received 91.5 cents in the dollar of the principal amount they had invested.
The hold-up on the final payment came about because of unsuccessful court proceedings brought by 29 Banksia investors against receivers KPMG for failing to act in the best interest of investors.
The case finalised in December 2025, with the judge refusing to allow them to take the matter any further.
The final payment comes mainly from the indemnity insurance of solicitors and barristers at the centre of the investigation surrounding the collapse of Banksia, as well as from the companies and estates of those men themselves.
Former Kyabram, and now Shepparton, resident Don McKenzie was among the members of the Committee of Debenture-holders, which was formed in 2015 to consult with the special purpose receiver.
Before that, he had been one of four people who formed an action group in Kyabram after the collapse of Banksia, holding public meetings in Kyabram and Shepparton.
Mr McKenzie is pleased that the last payment is finally about to be paid to debenture holders after so long.
“It’s been a 14-year saga,” he said.
Court and legal cases brought in the past five years had eaten up money that Mr McKenzie said could have gone back to investors had they not had to be fought.
“The massive disappointment is that this was not finalised much earlier in 2021,” he said.
“The payout would have been better.”
However, Mr McKenzie was pleased that he had been part of a group that had prevented the initial receivers from doing a “fire sale” after Banksia’s initial collapse.
“If a special purposes receiver was not appointed, we would have got back 48 to 50 cents in the dollar. It was headed that way,” he said.
“It’s been a long road.
“Thank goodness it’s over and people have got closure.”
