Gippsland on borrowed time

Gippsland Secured Investments has one more week to raise the necessary cash to avoid the appointment of receivers - half the extra time the debenture issuer was seeking.

The Trust Company, as trustee for the notes issued by Gippsland Secured Investments Limited, said yesterday that the Federal Court had "granted a further seven days to allow it to review proposals from GSI and the GSI Rescue Group."

The latter is a group of local business interests from south-east Victoria seeking to save the firm. They are understood to have pledged around A$7.5 million in capital to support GSI.

Gippsland, which has around A$160 million in funds, ceased to accept new investments in early July. It later suspended further redemptions of at-call and term investments.