The interim distribution to debenture holders in the Gippsland-based rural finance company is the third distribution in just over five months.

About 3000 debenture holders are owed $178 million after SESI, which has offices in Sale and Yarram, went into receivership back in February.

All deposits were frozen immediately after the appointment of Mr Shepard and Mr Korda as receivers after SESI was affected by a default from a major debtor, looming write-downs on $17 million of collateralised debt obligations and the Federal Government's decision to exclude companies like SESI from the bank deposit guarantee scheme.

Cheques and accompanying documentation will be posted to debenture holders over the coming days as of last week, according to receivers.

''This distribution will repatriate in excess of $15 million back into the local community at a much needed time,'' Mr Shepard said.

''Since our appointment in February, a total of $49.5 million has been distributed to debenture holders, the majority of whom reside in the Gippsland region.

''As we stated at the outset, the process of collecting loans and distributing funds will take some time to complete.

''However, the progress to date has exceeded our expectations and we hope this momentum will continue until all assets have been realised, and the proceeds returned to investors.''

Mr Shepard thanked debenture holders for their patience in the difficult circumstances and the SESI staff for their efforts in support of the receivership process.

Receivers also noted in their letter to debenture holders that negotiations with Bendigo and Adelaide Bank Limited for the sale of a portion of the company's portfolio of loans were progressing well.

But Mr Shepard said several key terms still needed to be agreed before the transaction could be concluded.

Receivers will update debenture holders when negotiations are complete.