Angas Securities remains confident it will be able to repay its investors in full

EMBATTLED debenture fund manager Angas Securities is confident of meeting its latest repayment commitment to investors, despite posting a significant loss.

Angas Securities investors at the Convention Centre for the recent vote to approve a third “run-off” proposal. AAP/RUSSELL MILLARD

EMBATTLED debenture fund manager Angas Securities is confident of meeting its latest repayment commitment to investors, despite posting a $26.5 million loss last financial year.

The result was driven by a $29 million impairment hit on loans the group is seeking to recoup for the benefit of investors, who in August approved a second round of amendments to the company’s repayment agreement.

The latest version of the company’s “run-off” agreement gives Angas until June 2019, rather than September 2017, to repay more than $100 million still owed to hundreds of investors.

Other changes included a reduction in the minimum value of liquid assets Angas must hold at the end of each month, from $5 million to $2 million, and that $5.58 million of unpaid interest be “forgiven” and there be no further accrual of interest — alleviating the need to pay a further $11.52 million.

At the time of the vote, just 42.5c in the dollar had been repaid to investors owed $220 million, but yesterday Angas executive chairman Andrew Luckhurst-Smith said that number would be lifted to 50c after the next redemption payment due before the end of this year.

While the company’s latest annual report explains how volatility and uncertainty in the property market could result in further impairment of loan assets and failure to complete the latest run-off proposal, Mr Luckhurst-Smith said the company remained on track to deliver on its latest commitment.

“This is appropriate language used to remind debenture holders of standard market risk, however the directors’ conclusion is that redemptions will run-off as per schedule,” he said.

Angas is forecasting a 100 per cent return to investors under the terms of its most recent repayment agreement, and has long been arguing that investors would receive far less should the debenture fund be placed in administration.

In October, the sale of Angas’ most valuable asset appeared to fall through when Rookwood General Cemeteries Reserve Trust failed to gain approval to develop parts of the Fernhill Estate in New South Wales - estimated to be worth around $30 million - into burial grounds.

Yesterday, Mr Luckhurst-Smith declined to comment on the sale as negotiations remained “commercial in confidence”.

Following lodgement of the company’s 2017 financial statements on Friday, Angas shares have been reinstated on the National Stock Exchange of Australia, providing “liquidity to investors which is positive for the business”, according to Mr Luckhurst-Smith.

Shares had been suspended on the exchange since September, after the company missed its original lodgement deadline.