INVESTORS in Gippsland Secure Investments have had their savings frozen at least until Tuesday, August 13.
GSI voluntarily suspended redemptions of at call and term investments on Friday, July 19 and confirmed that it was no longer accepting any new investments.
The Federal Court of Australia confirmed the suspension on Thursday following an application by The Trust Company (Nominees) Limited. The matter will return to Court on August 13.
In the interim GSI’s directors are looking at potential avenues to return funds to investors as soon as practicable. These include seeking potential buyers for GSI’s loan book and potential recapitilisation of GSI.
The firm’s directors admit that process may take some time to complete.
GSI’s directors suspended paying any investors after being provided with information showing that GSI needed to make provisions for increasing levels of soured loans and secured properties.
At the time it suspended redemptions GSI was advertising it held $150 million in assets under management.
The company issued a statement saying “The directors regret the current situation and apologise to investors for the inconvenience this may cause, and appreciates their patience and understanding.”