SOUTH EASTERN SECURED INVESTMENTS LIMITED
MEDIA RELEASE - 4 AUGUST 2009
Third distribution for SESI depositors
The Receivers and Managers of South Eastern Secured Investments Limited
(SESI) today announced a third distribution of 10 cents in the dollar to
SESI depositors. Cheques and accompanying documentation will be posted
to debenture holders over the coming days, commencing on Wednesday 5
August 2009.
Craig Shepard and Mark Korda of KordaMentha were appointed Receivers and
Managers of SESI on 11 February 2009. About 3,000 depositors, mostly
locals, were owed $178 million. All deposits were frozen immediately
upon their appointment. Media inquiries:
Mark Uebergang 03 8623 3333 or muebergang@kordamentha.com MEDIA RELEASE - 4 MAY 2009 Second distribution for SESI depositors
KordaMentha today announced a second distribution of 10 cents in the
dollar to South Eastern Secured Investments Limited (SESI) debenture
holders, less than 90 days after the appointment of Receivers and
Managers to the Gippsland-based rural finance company. Media enquiries: Mark Uebergang 03 8623 3333 or muebergang@kordamentha.com MEDIA RELEASE - 10 MARCH 2009 First distribution for SESI depositors KordaMentha
today announced a first distribution of 10 cents in the dollar to South
Eastern Secured Investments Limited (SESI) debenture holders, less than
one month after the appointment of Receivers and Managers to the
Gippsland-based rural finance company. Media enquiries: Michael Smith 0411 055 306 MEDIA RELEASE - 11 FEBRUARY
2009 Mark
Korda and Craig Shepard of KordaMentha were today appointed Receivers and Managers
of South Eastern Secured Investments Limited (SESI), a Gippsland-based rural
finance company. Directors
of the unlisted public company asked the Trustees of the company’s debenture
trust deed to appoint Receivers and Managers to manage and protect the
interests of debenture holders who are owed an estimated $180 million. Craig
Shepard said that SESI would no longer be accepting deposits and that the
existing deposits of debenture holders would be frozen from today. Mr
Shepard also indicated the Receivers and Managers would be calling for
immediate expressions of interest in the sale of the business as a going
concern and that the business would continue to operate on a “business as usual
basis” whilst the sale process is conducted. SESI’s
headquarters are in Korumburra and regional offices are located in Sale,
Leongatha, Wonthaggi, Cowes and Yarram. SESI was established in 1995 to lend to
the local market. It has issued 10 prospectuses, most recently in September
2008. Mr
Shepard said it was too early to predict the ultimate position of debenture
holders or to be too precise about the reasons for the company’s problems.
However, the company has recently been adversely affected by the financial
difficulties of a major debtor and the decision by the Federal Government to
exclude companies like SESI from the Bank Deposit Guarantee Scheme. SESI
customers and debenture holders can find more information in the creditor
section of www.kordamentha.com, including
contact numbers for further enquiries. Media enquiries : Michael Smith
0411 055 306
“We are delighted to announce a further interim distribution to
debenture holders - the third in a little over five months” said Mr
Shepard. “This distribution will repatriate in excess of $15.0 million
back into the local community at a much needed time.”
“Since our appointment in February, a total of $49.5 million has been
distributed to debenture holders, the majority of whom reside in the
Gippsland region” Mr Shepard said. “As we stated at the outset, the
process of collecting loans and distributing funds will take some time
to complete. However, the progress to date has exceeded our expectations
and we hope this momentum will continue until all assets have been
realised, and the proceeds returned to investors.”
Mr Shepard went on to say “Mark Korda and I would like to take this
opportunity to again thank the debenture holders for their patience in
these difficult circumstances and the staff of SESI for their tireless
efforts in support of the receivership process”
The Receivers and Managers also noted in their letter to debenture
holders that negotiations with Bendigo and Adelaide Bank Limited for the
sale of a portion of the Company’s portfolio of loans were progressing
well, however several key terms still needed to be agreed before the
transaction can be concluded. The Receivers and Managers will update
debenture holders when their negotiations are complete.
Craig Shepard and Mark Korda of KordaMentha were appointed Receivers and
Managers of SESI on 11 February 2009. About 3,000 depositors, mostly
locals, were owed $178 million. All deposits were frozen immediately
upon their appointment.
“We are delighted to announce a second distribution of 10 cents in the
dollar, less than 90 days after the receivership commenced” said Mr
Shepard. “Since our appointment in February, a total of $35 million has
been distributed to SESI debenture holders, the majority of whom reside
in the Gippsland region. We hope these distributions will alleviate the
financial burden felt by many in the community and help to stimulate the
local economy”
In their letter to investors, the Receivers and Managers advised that
they are working closely with borrowers and local financiers to
accelerate the realisation of the Company’s remaining assets. Mr Shepard
announced he had reached an in principle agreement with Bendigo and
Adelaide Bank under which around $20 million of SESI’s loans would be
sold. Mr Shepard also indicated that discussions with other parties
regarding the remainder of SESI’s assets are progressing satisfactorily.
“We hope that the sale to Bendigo Bank, in conjunction with other
discussions and initiatives that are underway, will allow us to make
another substantial distribution over the coming months” said Mr
Shepard. “Our priority is to continue realising SESI’s assets and making
distributions to investors as quickly as the inflow of funds will
permit. Whilst this process will take time to complete, we are very
pleased with the progress that has been made so far, which we attribute,
in part, to the support of the company’s dedicated customers and
staff”.
SESI employs seven staff with offices in Korumburra and Leongatha and
agencies in Sale, Wonthaggi, Cowes and Yarram. In February, SESI’s
directors asked the Trustees of the company’s debenture trust deed to
appoint Receivers and Managers to protect the interests of debenture
holders after the company was affected by a default from a major debtor,
looming write-downs on $17 million of collateralised debt obligations
(CDOs) and the Federal Government’s decision to exclude companies like
SESI from the bank deposit guarantee scheme.
Craig Shepard and Mark Korda of KordaMentha were appointed Receivers and
Managers of SESI on 11 February 2009. About 3000 debenture holders,
mostly locals, were owed $178 million. All deposits were frozen
immediately upon their appointment.
“This interim distribution is the first of many distributions we hope to
make over the coming year” said Mr Shepard. “Whilst at this stage the
eventual return to debenture holders is still unclear, the information
available to us suggests that debenture holders should expect to receive
a substantial return of their principal over time”
Mr Shepard said he believed the majority of the company’s assets could
be sold or
collected over the coming 12 to 18 months and discussions are currently
under way with several financial institutions interested in acquiring or
refinancing parts of the company’s $148 million loan portfolio. “We
hope to conclude these discussions soon and aim to make further
distributions over the coming months” Mr Shepard said.
“Our role is to continue realising the company’s assets and to make
distributions to the debenture holders as soon as the company’s cash
flow will permit,” said Mr Shepard. “This distribution of $18.0 million
to over 5,500 accounts represents a significant first step in the return
of funds to investors. We are very pleased with the progress we’ve made
in the receivership which we attribute, in part, to the support of the
company’s dedicated customers and staff.”
SESI’s head office is in Korumburra. It has two offices and eight staff.
A second office is located in Leongatha and SESI has agencies in Sale,
Wonthaggi, Cowes and Yarram. Directors asked the Trustees of the
company’s debenture trust deed to appoint Receivers and Managers to
protect the interests of debenture holders after the company was
affected by a default from a major debtor, looming write-downs on $17
million of collateralised debt obligations (CDOs) and the Federal
Government’s decision to exclude companies like SESI from, the bank
deposit guarantee scheme.