2.5 cents for Mortgage Trust Fund investors

Last updated 14:58 15/08/2012

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The 4500 Canterbury investors in the Canterbury Mortgage Trust Fund have been paid another 2.5 cents, taking total repayment so far to 83 cents in the dollar.

The fund is being wound up since a run on it in mid 2008. It invested in property.

The fund has 20 loans left to cash up but they are the most difficult.

When the mortgage fund was frozen in mid 2008 it had 297 loans.

The company managing the fund, Fund Managers Canterbury, and the trustee, Trustee Executors, decided to wind it up in February 2009

The mortgage fund's annual report for the year to March 2012 said the fund had repaid $202.5 million to investors, 80.5 cents in the dollar.

This week investors were repaid another 2.5c.

The mortgage  said in the annual report it  expected to conservatively realise another 7c, including the just paid 2.5c, from 20 loans remaining to be collected taking the total repayment to 87.5c.

However, the trust was hoping to realise another 3c to 4c taking the total repayment to 91c.

Don McBeath, chairman of Fund Managers Canterbury, the company that managed the mortgage fund, said the fund was determined to to get repayment of these last 20 loans.

"They are the most difficult and time-consuming to recover, but please be assured we are still strongly pursing their recovery,'' he said.

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- The Press

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