Lift returns at least 50c in the dollar

The administrators of closed securities lender Lift Capital told creditors that a surplus of between $200 million to $240 million may be available to meet creditor claims of $270 million, The Age reported.

Lift administrator Tony McGrath, from McGrathNicol, told a creditors' meeting yesterday that he was seeking advice on whether Lift should allocate all surplus assets to a pool that creditors shared equally or whether to establish ownership of specific securities and allow creditors to regain their stock in return for paying down loans against the assets.

Merrill Lynch was the lender to Lift Capital, with a loan of $621 million, according to a presentation at the meeting. The investment bank claimed $761 million worth of shares from Lift as security over the loan two weeks ago.

The assets available include the expected surplus of $100 million from the sale of securities held by Merrill Lynch and $128 million worth of managed funds.

McGrath told creditors those in the pool could expect a payment of at least 50 cents in the dollar.

''We think there will be some investors who are fully protected and get all their money back,'' AAP reported.

''Equally there will be some investors who will be exposed to the pool.''