Initial payment for GSI note holders

NOTE holders of failed Gippsland Secured Investments will receive an initial payment of 15 cents back from every dollar they lost when the rural lender collapsed earlier this month.

The payment, distributed by the trustee and receivers, is calculated against balances at July 19 and is designed to alleviate any immediate hardship faced by investors.

Receiver Adam Nikitins of Ernst and Young said total returns were still expected to exceed 80 cents in the dollar.

“Our priority continues to be to manage GSI’s assets in a manner that will maximise the financial returns to note holders,” he said.

Mr Nikitins said receivers were still considering a recapitalisation plan for the lender.

“Recapitalisation remains a potential option for GSI and discussions on this are continuing with the rescue group formed by members of the Gippsland community,” he said.

The lender collapsed on September 3 after a lengthy court battle by local investors to keep the company alive.

Information sessions for GSI note holders will be held on October 9.