Welcome

Thank you for visiting the Banksia Class Action information site. This site is intended to be an information point for debenture holders and other interested parties throughout the course of the case.

If you are a debenture holder, please submit your details to receive updates from the legal team.

More information on the class action is available from the receivers, McGrathNicol at http://www.mcgrathnicol.com

Updates

The Plaintiff has entered into a partial settlement of the Banksia Group Proceeding (proposed settlement) with all defendants other than the trustee appointed to act on behalf of group members (The Trust Company (Nominees) Limited, referred to as the “trustee”) and Banksia.

Trial: the trial of the Plaintiff’s claim against the trustee and Banksia will commence on 1 May 2017.  The estimated duration of the trial is currently 12 weeks, however, it is possible that the trial may conclude earlier depending upon a variety of factors that will not be resolved until later this year.  The Plaintiff seeks to recover a sum in excess of $120 million (plus interest on that sum since 24 December 2012) from the trustee on his own behalf and on behalf of Group Members who have not opted out.  On 8 September 2016 further procedural orders were made by the Honourable Justice Croft in the Supreme Court of Victoria in respect of various matters (finalisation of pleadings, preparation of court book and preparation of evidence of witnesses) in preparation for the conduct of the trial.

Partial settlement: The Plaintiff’s settlement with the auditor and the directors is a partial settlement only.  The Plaintiff’s claim against those defendants was also to recover a sum in excess of $120 million (plus interest), being the same loss that is sought from the trustee (i.e. the outstanding principal in respect of the Banksia debentures).

Partial settlement approval: The partial settlement was approved by the Honourable Justice Robson in the Supreme Court of Victoria on 26 August 2016.  The approved settlement proceeds are in the gross sum of $5,200,000.  These monies are payable by the settling defendants following the expiry of the time for appeal from the order granting such approval.  The net proceeds of the partial settlement following deduction of certain costs and expenses approved by the Court, is a sum of approximately $1,750,000.  This money will be distributed pro rata to class members as soon as practicable following its receipt by the Plaintiff.