Sale give Western Bay Finance investors some dollars

SBS-owned Finance Now has bought part of the loan book of failed finance company Western Bay Finance.

Thursday, 28 September 2006

Finance Now is due to acquire loans with a face value of $30 million for a cash payment of $27.9million. The transaction is scheduled to settle on 2 October 2006.

"Prior to receivership Western Bay Finance had actively marketed its assets for sale, without a transaction being concluded,” receivers Grant Graham and Brendon Gibson say.

“Since our appointment we have continued to review the quality of the company's loan book, to actively pursue outstanding loans and to monitor the collection profile.”

“Our analysis has led us to the definite conclusion that this transaction with Finance Now represents the best available value for this portion of the loan book."

The timing of further payments from realisations of remaining assets held is dependent on the timing of further collections.

The receivers continue to actively pursue the realisation of the balance of the book with the assistance of company staff.

"We are pleased to be able to get a significant chunk of principal back into the hands of debenture holders in a timely fashion,” the receivers say.

The transaction is consistent with the receivers' earlier recovery estimate of 75 to 80 cents in the dollar.

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