Legal fees make up bulk of Great Southern settlement
Investors who backed certain agricultural managed investment schemes run by Great Southern will receive $16.79 for every $10,000 they invested under a settlement approved by the Supreme Court of Victoria.
The settlement provides for payments totalling $23.55 million by Great Southern's insurers, of which the bulk will go reimburse those investors who contributed to Macpherson and Kelley's legal fees.
Under the deed of settlement, welcomed by Bendigo and Adelaide Bank managing director, Mike Hirst, loans from the bank are valid and enforceable, however, overdue interest that has been accrued and unpaid as of yesterday's date have been waived.
"The Bank's agreement to waive overdue interest acknowledges the protracted nature of the court proceedings and the goodwill of the bank in seeking to work with borrowers to finalise this matter," Hirst said.
However, he said the bank was committed to helping all borrowers to meet their obligations to repay their loans.
"Whilst 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."
"We understand this has been a difficult process for all parties concerned, but we remain committed to providing a high standard of service and working with people to ensure the loans are repaid in full over time."
AUTHOR
Nicholas O'Donoghue
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