Notice to Banksia Securities Limited Debenture Holders – Bolitho Partial Settlement Sum dated 1 May 2017
Dear Banksia debenture holders,
The partial settlement was approved by the Honourable Justice Robson in the Supreme Court of Victoria on 26 August 2016.
The net proceeds of the partial settlement (after payment of legal expenses and litigation funding costs approved by the Court) total approximately $1.75 million.
The applicable distribution rate for these funds is: $0.25 cents per $1 still owing on issued debentures held by each class member. The costs associated with making the distribution (more than $100,000 or 6% of the total amount to be distributed) render it uneconomical at this time to make a distribution to the class members. In the case of many debenture holders the cost of distribution is greater than the amount that would be distributed.
The settlement funds are currently being held on trust in an interest bearing account earning approximately 2% per annum with Westpac Bank and will not be used for any purpose other than distribution to class members in due course.
It had been expected that these funds would be distributed to class members at the same time as the recent distribution made by Ferrier Hodgson, the liquidators and special purpose receivers to Banksia.
However, Ferrier Hodgson declined to distribute the class action settlement funds.
It is now proposed that the class action settlement funds will be distributed following the receipt of additional funds from a settlement or delivery of judgement in the class action proceeding.
On 31 March 2017, the Receiver and Special Purpose Receiver declared and paid a dividend of 2 cents in the dollar to each eligible debenture holder.
In the meantime, a trial date for the Bolitho class action against the trustee has be set, commencing 12 February 2018 with time allocated (except all Fridays) until 22 March 2018 and recommencing on 23 April 2018 until 7 June 2018.
Thank you for your continued support.
Notice to Banksia Securities Limited Debenture Holders dated 20 February 2017
WHY YOU SHOULD SIGN A LITIGATION FUNDING AGREEMENT
The Banksia Class Action is a group proceeding brought by Laurence Bolitho, as a representative Plaintiff, on behalf of himself and all debenture holders in Banksia Securities Limited (BSL). The proceeding was commenced in the Supreme Court of Victoria on 24 December 2012. The defendants are BSL and Trust Company Nominees Ltd (“Trustco”).
BSL Litigation Partners Ltd (“the litigation funder”) has to date funded the progression of the Banksia Class Action since December 2012. The litigation funder has made payment of significant disbursements, legal costs and posted substantial security for costs in the proceeding. With a trial date now confirmed for 12 February 2018, further significant expenses will be met by the litigation funder in order to progress this claim against TrustCo to trial.
A majority of debenture holders by value have already entered into binding litigation funding agreements (“LFA”) with the litigation funder. Under each LFA, the debenture holder has agreed to pay to the litigation funder an amount, as consideration for the financing of the case and performance of various obligations, being a maximum of 30% of any resolution sum received. Regrettably, a large number of debenture holders have not signed an LFA with the litigation funder.
Signing the LFA requested by the litigation funder furthers your interests as a debenture holder and ensures the continued funding of the Banksia Class Action to trial by the litigation funder.
By signing and returning the Litigation Funding Form, you cannot be held personally liable for any adverse costs award or any legal costs to any person as a consequence. You are simply agreeing to pay the litigation funder a percentage (up to 30%) of any recovery made on your behalf in the proceeding.
If you do not sign an LFA, you are still a group member of the proceeding, but the Court is likely to make orders to prevent or minimise the undesirable existence of “free riders”. It is unfair to other debenture holders that some class members agree to remunerate the litigation funder while others continue to refuse to do so.
In due course, the litigation funder will likely apply to the Supreme Court of Victoria for a common funding order of up to 30% of the settlement proceeds of the Banksia Class Action so that the position between signatories and non-signatories of LFA’s is uniform and thereby regularised.
Notwithstanding this default position, by signing and returning an LFA, you will be showing your support in a meaningful way and assisting Laurence Bolitho to bring the defendants to court and requiring them to accept full responsibility for their role in the collapse of the Banksia Group.
A sample LFA is contained in this link: Banksia Class Action – Litigation Funding Agreement
If you need any assistance to complete an LFA please do not hesitate to contact us at info(Replace this parenthesis with the @ sign)banksiaclassaction.com.au or on 03 9002 2520.
Notice to Banksia Securities Limited Debenture Holders dated 2 June 2016
Please see attached the Class Action Notice to Group Members dated 2 June 2016