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Eighteen months on, it has been revealed that the average return to all creditors in the $20 million Refund Home Loans collapse will be no more than 12 cents in the dollar.
The shell of Refund Home Loans was placed in liquidation in June 2012, a month after Homeloans acquired the company’s loan book and other selected assets and eight months after it entered administration.
Refund was liquidated with debts of $20.1 million owed to 292 creditors, according to the liquidator, SV Partners.
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The latest presentation of accounts from SV Partners revealed that creditors will see no more than $2.4 million at best, or 11.9 cents in the dollar.
The worst case scenario is for creditors to be paid $1.9 million, or just 9.4 cents in the dollar.
SV Partners has so far recovered $2 million, according to the report. The liquidator forecast that it could recover another $700,000 at best – $677,000 through legal action and $23,000 from various debtors.
SV Partners also disclosed that it has so far charged $248,000 in fees and estimated it would charge between $50,000 and $100,000 during the rest of the liquidation process, which is expected to end in December 2014.
According to the report, Refund Home Loans was liquidated with debts of $788,000 to 39 priority creditors, $1.9 million to one secured creditor and $17.4 million to 252 unsecured creditors.
That suggests that the priority creditors will receive 100 cents in the dollar, the secured creditor will receive between 58 cents and 85 cents, and the unsecured creditors will lose all their money.
SV Partners had not replied to The Adviser’s request for comment by press deadline.
