Cash-strapped finance company St Laurence has been put into receivership, owing 9,000 investors $245 million.
On Wednesday St Lawrence warned investors it would not be able to repay them on time, and urged them to consider swapping their debenture stock and capital notes for equity in a new company.
But the company's trustee, Perpetual Trust, agreed on Thursday afternoon put the company into receivership.
Matthew Lancaster of Perpetual says the company's debt for equity swap proposal was misleading, and provided investors with no certainty that St Laurence's very disappointing performance would improve.
Mr Lancaster says receivership provides investors with more certainty.
