Wickham Securities creditors to get between 6 and 22 cents back for every dollar: liquidator
Self-funded retirees who invested their savings in failed debenture issuer and mortgage lender Wickham securities should expect to be reimbursed at best around a quarter of their capital.
Investors in Wickham Securities $1 notes are owed around $30 million.
Based on the information currently available, Grant Sparks, joint liquidator from PPB Advisory, says a return of between six cents and 22 cents for every dollar owed should be expected.
Creditors voted this week to place Queensland-based Wickham Securities in liquidation.
“We will continue our investigations and seek to realise the loan book,” Sparks tells Property Observer.
Wickham Securities provided 21 loans totalling $28 million at high interest rates to borrowers to fund or refinance commercial property developments.
Of this amount, $5 million was lent to borrowers who are now in liquidation while a further $9.5 million was lent to borrowers where receivers or administrators have been appointed.
PPB Advisory will also examine third party security to see if that can be recovered to pay back investors.
PPB Advisory were also appointed administrators of seven companies related to Wickham, including Sherwin Financial Planners, a business run by Wickham chairman Bradley Sherwin, whose clients included self-funded retirees and some high-net worth individuals advised to invest in the mortgage lender's fund programs.
“We will also continue to provide reports to ASIC,” says Sparks.
Investigations by PPB Advisory found what appears to be a $10.8 million hole in Wickham’s cash flow position.
Sparks says he should next be able to provide a meaningful update to creditors in around eight weeks’ time.
No date has yet been set for an update.