GSI seeks extension

GIPPSLAND Secured Investments has asked for an extension to a deadline to seek new investors in an effort to re-capitalise the business and raise more equity.

The directors have received a strong level of interest from a number of potential investors, including local business people and major financial institutions.

GSI managing director Glenn Sanford said the company had received many indications of support from the Gippsland community for GSI to resume business.

GSI on Friday wrote to the trustee to provide it with an update on the progress that had been made by the company to obtain proposals, and to emphasise the importance of GSI having additional time to pursue re-capitalisation proposals beyond the seven-day period that the trustee announced publicly on July 26.

GSI believed having additional time to continue to seek proposals would help ensure the optimal outcome for note holders and the Gippsland community.

Federal Court orders made on July 25 continued the suspension of redemptions until August 13.

The directors have invited a number of parties to conduct due diligence on its business to enable them to present proposals to re-capitalise the business with additional equity.

The directors have asked for proposals within a tight timeframe to resolve the current situation as soon as possible; however the directors gave no assurance there would be any proposals received from the invited parties.