Boston Finance placed in receivership

At the time of the moratorium in March 2008, 1,300 investors had approximately $38.5 million invested in Boston Finance. Since then, $14.24 million has been repaid to investors equating to a return of 37 cents in the dollar. This includes a distribution of $2.30 million to be made now. 

There are eight loans to be recovered with a book value net of provisions of $15.85 million. A substantial portion of the dollar value of these eight loans is subject to High Court litigation so it is too difficult to accurately estimate timing and recovery quantum.

After consultation with the directors and KordaMentha (as moratorium manager) and after reviewing and examining available options, the trustee has decided that receivership is the most appropriate course of action.

"While a moratorium was the appropriate course of action in 2008, investors' interests will now be best served by a receivership. We are confident that the loan recovery process is now at a stage where a professional receiver can best maximise recoveries of remaining assets," Perpetual Trust head of corporate trust, Matthew Lancaster said.