Further to the case is this article it's now confirmed by justice Croft
Great Southern deal wins court approval
- by: Drew Cratchley
- From: Herald Sun
- December 11, 2014 9:00PM
A court has approved a class action settlement against Great Southern, which operated by lending money to people to invest in its plantations.
Source: News Corp Australia
A $23.5 MILLION settlement of a class action related to loans to investors hit by the billion-dollar collapse of agribusiness Great Southern has won court approval.
The agricultural projects manager, which raised $1.8 billion and managed 45 investment schemes, collapsed in 2009.
Victorian Supreme Court Justice Clyde Croft on Thursday approved the settlement, agreed to by Bendigo and Adelaide Bank and about 2000 of its borrowers in July.
Justice Croft described the collapse as a tragedy for many people, including investors, shareholders and employees.
A payment of $23.55 million, which is not funded by the bank, will be made to borrowers, mainly to reimburse legal fees.
Great Southern investors had been seeking to have loans issued by Bendigo and Adelaide Bank deemed void, and for all money issued by the bank to be repaid to borrowers.
However, the settlement involves borrowers admitting their loans were valid and enforceable.
The bank has agreed to waive interest relating to overdue amounts on those loans.
Bendigo and Adelaide Bank chief Mike Hirst said the recovery of loans would not begin for 30 days. “While we’d prefer prompt payment of the debt, we understand some borrowers might not be in a position to pay the full amount in that timeframe,” he said.
“We’re happy to work with people — and even refinance loans where that makes sense — to ensure they can meet their obligations without hardship.”
The settlement will not have an impact on the bank’s financial accounts.
Great Southern operated by lending money to people to invest in its plantations, partly in grapevines, olives and almond trees, with the aim of providing them income when those plantations were harvested.
It then packaged those loans and onsold them, some of these to Bendigo and Adelaide Bank.
