LKM investors hit with another blow
THERE'S more bad news for investors in Coffs Harbour company LKM Capital, with the receiver claiming the first distribution to investors will now be less money than previously thought and issued a month later.
The latest report from BRI Ferrier states the receiver 'hopes to be in a position' to pay an interim distribution to debenture holders of four cents in the dollar in late April or early May.
This is despite a receiver report last November claiming a distribution would be made in March and would be higher than 5 cents in the dollar.
The news is yet another blow to the 1180 investors who have been waiting since August last year to know the future of the $63 million they invested in the Coffs Harbour company.
However the report does offer investors some hope, with Centrelink agreeing to revalue investments in LKM at 40 per cent of its value prior to the appointment of the receiver.
This means a $10,000 investment in LKM will be valued by Centrelink at $4000. A debenture holder meeting is likely to be convened in April in order to provide investors with an update on the receivership and to amend the Trust Deed to 'reorder distribution components so that payments are made against capital in priority to interest and to cease to accrue interest on debentures'.