Wooduk, I reckon this is what you really need - to void loans...

Wooduk, I reckon this is what you really need - to void loans invested into MIS.


at http://www.financialstandard.com.au/news/view/29502/

Great Southern legal battle continues

Thursday, 12 August 2010 12:35pm

Macpherson + Kelley Lawyers are progressing with their legal campaign against Great Southern, filing with the Victorian Supreme Court further allegations through a class action against the collapsed agricultural investment scheme manager.

Formerly a leading investment brand, Great Southern has fallen into severe debt and liquidation resulting in over 2,000 investors seeking damages while lawyers move to void loans invested into the failed agribusiness investment schemes.

If the courts deem these loans void, this would result in Great Southern Finance loans unable to be enforced which would flow down onto banks that provided loans through Great Southern Finance. These banks include Bendigo and Adelaide Bank and Javelin Asset Management, with Bendigo and Adelaide Bank responsible for 8,200 borrowers alone.

The cause behind the class action is based on the question that investors were not given adequate information to make a sound investment decision, with some facts on project long-term sustainability allegedly obscured from investors.

Great Southern offered investment opportunities in many areas including agricultural, forestry, cattle, olive, almond, renewable fibre and vineyards resulting in over 25,000 investors from 2005 to 2009. However, short-term cash issues arose quickly with the company recording under $700 million debt shortly thereafter.

Further adding pressure are industry rival Timbercorp previous collapse along with Forest Enterprises Australia and Rewards Projects Ltd, where a similar situation with investors has also resulted in a class action.

The Great Southern case is expected to be heard between April and June 2011.

Elise Burgess