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.