GSI accounts still frozen

Thousands of ‘mum and dad’ investment accounts with embattled local financial lender Gippsland Secured Investments remain frozen, as Gippsland businesses rally to keep the mortgage fund afloat.

According to numerous media reports, Gippsland businesses have been optimistic about their joint effort to bail out the company, having collectively raised about $7 million, however, GSI remains more subdued about its future.

In a statement on its website, the company said suggestions this amount would “be sufficient to keep GSI afloat” were “entirely inaccurate”, and the company’s trustee was due to meet with local businesses yesterday, to further discuss recapitilisation options.

“The amount of equity required to be raised and the details of the recapitalisation proposal are still being determined,” the statement read.

The company’s trustee had requested GSI provide its recapitalisation proposal by no later than 9am on Monday.