Many south-west investors in the failed Banksia finance company are frustrated after an appeal was launched against a $64 million settlement deal that was to give them another eight cents in the dollar on their investment last month.
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Banksia investors representative, Don McKenzie of Kyabram, said an appeal against the settlement was lodged in the Supreme Court last month, questioning the amount of the settlement sum, the amount awarded in commission to the funder of a class action by Banksia investors and the transparency of the approval process for the settlement.
Mr McKenzie said the appeal was lodged by Sydney barrister Chris Botsman, representing his mother, Banksia investor Wendy Botsman.
The appeal came just as Banksia liquidator Ferrier Hodgson was to distribute the $64 million settlement to Banksia’s 16,000 debenture holders, who include about 1000 investors in the south-west.
The settlement followed negotiations between Ferrier Hodgson and a class action fronted by Banksia investor Laurence Bolitho against Banksia’s trustee, the Trust Company.
The settlement was to deliver another eight cents in the dollar to Banksia investors, lifting the money they had been able to salvage from Banksia since it collapsed in 2012 to about 90 cents in the dollar.
In a letter to Banksia investors this month, Ferrier Hodgson said the appeal against the settlement was to be heard in the Victorian Supreme Court on June 8.
Mr McKenzie said another court case against Banksia’s insurers would start in November which, if successful, could deliver another two cents in the dollar for investors.