Warning to Timbercorp investors

THOUSANDS of Australian investors who took out loans through Timbercorp’s finance arm to invest in the failed agribusiness investment scheme could be relinquishing their legal rights by accepting a settlement offer, a law firm warns.

Slater and Gordon professional litigation lawyer James Naughton cautioned Timbercorp Finance borrowers to carefully consider the potential impact of settling their loans through a discount repayment scheme offered by the liquidator.

The law firm has a number of clients who were investors in Timbercorp.

“The opportunity to settle debt at a discount may sound attractive, but Timbercorp Finance borrowers should investigate whether accepting this offer will prevent them from pursuing further legal action,” Mr Naughton said.

About 14,500 investors borrowed a total of $477.8 million from Timbercorp Finance to invest before the managed investment scheme collapsed and was placed in liquidation in 2009. The company had extensive bluegum plantations in the south-west.

The liquidator has offered borrowers a 15 per cent discount if they repay their loans upfront and 10 per cent for some part-payments.

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