Investor Update

  • 6-21-2018

Dear Investor

The Board of Mayne Investments continues to work towards the collection of the last loan receivable which will enable the Northern Investment Trust Fund to be wound up and a final distribution of capital to be returned to Investors.

The Board has been successful in disposing of all of the many properties held as security over outstanding loans with the exception of one property, which is in the hands of a Receiver.  This property, which is vacant land with an approved development consent for a particular development, is in the outer Brisbane region of Queensland and has been marketed extensively to introduce a buyer to the property.

A brief history of the dealings with this property are as follows:

The owner of the Property was in default of its loan to Mayne and entered into Voluntary Administration.  To protect its interests, Mayne appointed a Receiver over the property which was mortgaged to Mayne as security for the Loan.

After obtaining independent valuations and extensively marketing the property in order to introduce a buyer, the Receiver had identified a number of interested parties who, over an extended period of time, have engaged in negotiations and extensive due diligence processes with a view to purchasing the property.

With each of these interested parties, the due diligence examination has been a long drawn out process.  At the end of each set period to complete their due diligence examination, the interested parties have decided not to proceed with the purchase of the property.

The most recent potential buyer decided on 1 June 2018 that their due diligence was not satisfied and let the agreements to purchase lapse.

Currently the Receiver has commissioned a renewed marketing campaign, to be conducted via expressions of interest, which is hoped will introduce a buyer to the property.  Until this property is sold, there is nothing Mayne can do to expedite the wind-up process.

The Board has taken various steps to reduce the operating costs of the Fund over the last 18 months.  Staff size and costs have been reduced as the former CEO Mr Gregory Andersen ceased employment in October 2017 to further his career in banking.

Mr Tony Oaten, previously the Chief Financial Officer since 2013, was appointed CEO in October 2017 and our Administration Assistant Trish, continues to work controlling the detailed front office administration of the Fund, on a part time basis.

During this time, the office of Mayne has been downsized by more than 50% and is now located at the rear of what had been our office for many years, at 29 Molesworth Street Lismore.  Office hours were reduced in November 2017, with the office now open Tuesday, Wednesday and Thursday from 8.30am to 3pm.  Messages can be left on the answering service after these hours.

From the date the fund was frozen, to date, Mayne has returned 97.61% of Investors funds.  The final distribution amount will be determined by the length of time taken to sell the remaining property and the sale price achieved.

The delay in selling the final security property has been frustrating to all concerned, but be assured that everything that can be done, is being done to bring this to a conclusion as soon as possible.

Once the last remaining security property has been sold, the Board will contact Investors to advise the date of the final capital return.

Thank you for your continued patience in what has been and continues to be a difficult time for all concerned.

Yours sincerely

 

Kevin J McGregor

Chairman


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