Boston Finance trustee, Perpetual Trust, has ended a moratorium arrangement in place since March 2008 by putting the firm into receivership.

Grant Graham and Brendon Gibson of KordaMentha would oversee the receivership. They have been appointed after consultation with firm’s moratorium manager, KordaMentha.

KordaMentha stated, "While a moratorium was the appropriate course of action in 2008, investors' interests will now be best served by a receivership."

Boston Finance, the wholly owned subsidiary of the insolvent Australian Octaviar group, was put into receivership in March 2008 at a time when the firm grappled with financial crisis.

Boston Finance reported 1300 investors investing about $38.5 million in the firm when it went for moratorium. It had already repaid $14.24m to the investors by now, including funds worth $2.3m to be released very soon.

The firm is yet to recover eight loans but the recovery and quantum is uncertain now as the case is pending with the High Court.

KordaMentha further added, "We are confident that the loan recovery process is now at a stage where a professional receiver can best maximize recoveries of remaining assets."