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 12 February 2018 with time allocated (except all Fridays) until 22 March 2018 and recommencing on 23 April 2018 until 7 June 2018.
The estimated duration of the trial is currently 10 weeks, however, it is possible that the trial may conclude earlier depending upon a variety of factors that will not be resolved until later next 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.
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 is currently being held in trust with Westpac Bank accruing interest in a term deposit and will be distributed pro rata to class members in due course