The Supreme Court of Victoria yesterday approved a settlement reached in draft form two months ago between Bendigo and Adelaide Bank and borrowers who invested in certain agricultural managed investment schemes run by Great Southern.
Unsurprisingly, as the deal was unchanged to what was drafted in October and then signed by around 2000 borrowers, the bank welcomed the decision. Bendigo's managing director Mike Hirst said it would bring class actions involving the bank to a close.
Hirst said the bank would write to borrowers and advise them of the outcome of the class action provided by the settlement.
The Deed of Settlement provides for a payment of A$23.55 million, expected to be funded through an insurance claim once a scheme of arrangement comes into effect.
Most of the amount paid out under insurance will be used to reimburse those who contributed to Macpherson and Kelley's legal fees.
The deed confirms:
- loans with Bendigo and Adelaide Bank are valid and enforceable,
- accrued standard interest on loans is payable; and
- overdue interest that has been accrued and unpaid as at the date of approval has been waived.
The Bank said it would not commence recovery proceedings for at least 30 days from yesterday. "We're happy to work with people - and even refinance loans where that makes sense - to ensure they can meet their obligations without hardship," Hirst said.
He also added that the bank was working with borrowers "to ensure the loans are repaid in full over time."