Vision Securities, sunk by failed loan settlement

Trustee Perpetual Trust called in receivers Rod Pardington and David Levin of Deloitte after Vision failed to settle a mortgaged property last week that was expected to generate some $6.75 million and keep it afloat. Vision's directors told Perpetual's head of corporate trust Matthew Lancaster they believed the company would be unable to meet its ongoing debenture obligations.  

"The directors report that the company's borrowers are finding it increasingly difficult to refinance or repay their maturing loans," Lancaster said in a statement. "VSL has concluded that receivership is the best option to protect all investors and to ensure all investors are treated fairly."  

In February, Vision was put into the high risk category by rating agency Standard & Poor's, which issued it a B credit rating with a negative outlook, amid the flurry of companies lining up to meet Reserve Bank regulations that require non-bank deposit takers to be rated.

Today's announcement prompted S&P to downgrade the company's rating to a D, with any further write-downs of the company's loan book likely to breach its trust deed.