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Briefs: Deutsche Bank buys GSI loan book, Westpac compensates traders

19 March 2014 4:57PM
The trustee and receivers of former debenture-funded mortgage provider, Gippsland Secured Investments, yesterday finalised the sale of the remaining GSI loan book to Deutsche Bank. Proceeds of the loan book sale and early settlements from the auction of real estate held by Riviera Properties, once GSI's largest debtor, are expected to be distributed to note-holders "in late April". The payment, expected to be 50 to 55 cents in the dollar, will add to earlier distributions of 25 cents in the dollar. The receiver, Adam Nikitins of Ernst & Young, estimated the final return to note-holders at between 87 and 92 cents. Receivers were appointed to GSI in September 2013, after the Federal Court ruled a recapitalisation proposal was too complex, putting note-holders' funds of A$143 million at risk. Westpac has compensated investors who lost money last week when technical problems with its share trading system meant some trades were not executed. According to iTnews, the bank updated its conditional trading system, which allows investors to set automatic buy and sell instructions for stocks depending on price movements. A "small" number of trades were not executed because of technical problems during the upgrade, the bank said.

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