Trust Company subject to Banksia action
The Trust Company has found itself embroiled in the legal action surrounding failed Banksia Securities.
Trust Company announced to the Australian Securities Exchange today that its wholly-owned subsidiary Trust Company (Nominees) Limited had been served with a legal claim filed on behalf of debenture holders of Banksia Securities Limited and Cherry Fund Limited.
The announcement said that the legal claim, filed in the Supreme Court of Victoria, named, among others, the Trust Company (Nominees) Limited as a defendant.
The ASX announcement said that on 25 October 2012, the Trust Company (Nominees) Limited, in its capacity as trustee for the debentures issued by Banksia and thus a secured creditor of Banksia, appointed McGrath Nicol as receivers to Banksia.
The announcement said the Trust Company (Nominees) Limited considered the claim made against it to be without basis.
It said the company would continue to act in the best interests of debenture holders of Banksia throughout the receivership and would work closely with the receivers.
The ASX announcement noted that on 7 December last year, the receivers of Banksia had made their first distribution to Banksia debenture holders, representing 20 cents in the dollar on debenture holders' investments, and estimated a total repayment to Banksia debenture holders of between 50 and 65 cents in the dollar.
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