Investors fear $63m in savings is lost

A COFFS Harbour investment company has gone into receivership, leaving more than a 1000 investors wondering if they'll ever see their $63 million again.

LKM Capital, a debenture issuer that started business in Coffs Harbour 30 years ago, is now in the hands of receivers Andrew Cummins and Brian Silvia of Ferrier Green Krejci Silvia (FGKS).

The receivership came after LKM's trustee, Sandhurst Trustees, moved to protect the interests of the 1180 secured debenture holders, when concerns were raised about the company's ability to repay $63 million in investments.

Receiver Brian Silvia said at this stage he could not speculate on how much investors would get back.

“LKM Capital looked at its cash flow and were concerned the cash flow couldn't parallel its obligation to pay redemptions,” Mr Silvia said.

“They have long-term assets such as four retirement villages and loans extended to property developers for subdivisions, which will take some time to realise.”

The Australian Financial Review reported LKM Capital's portfolio was split between mortgages ($32.26 million), property ($23.81 million) and stakes in small companies ($6.91 million).

A freeze has been placed on the payment of interest and redemptions, and receivers FGKS have applied to the government for the lack of payment to be taken into account on asset tests for LKM investors.

Mr Silvia said a circular has been sent to investors explaining the situation, and a more substantial report would be issued in 14 days time.

LKM Capital was once a part of the Koops Martin Group, which is not affected by the receivership.



Bonville providing the backdrop for a challenging Classic

Bonville providing the backdrop for a challenging Classic

Players admit Bonville Golf Resort is a difficult course to tame.

Our indie rockers release their soundtrack to the world

Our indie rockers release their soundtrack to the world

Local band releases first single worldwide

New investigation squad formed after $14m cannabis busts

New investigation squad formed after $14m cannabis busts

New squad to be based in Coffs Harbour to target drug, gun crimes.

Local Partners