10/03/2014 - 15:28

IMF plans Great Southern settlement

10/03/2014 - 15:28

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Litigation funder Bentham IMF has announced a conditional settlement of its claims against collapsed investment manager Great Southern.

IMF plans Great Southern settlement

Litigation funder Bentham IMF has announced a conditional settlement of its claims against collapsed investment manager Great Southern.

IMF said the terms of the settlement would remain confidential but were expected to generate revenue of $12.2 million and a profit after capitalised overheads but before tax of $10 million.

The settlement is subject to the support of 50 per cent (by value) of the plaintiffs.

Great Southern collapsed in 2009, leaving investors in its many agricultural investment schemes owed up to $1.8 billion.

IMF announced in 2009 that it would fund two separate legal claims related to Great Southern.

The first, announced in June 2009, was for investors who exchanged their interest in two cattle projects for shares in Great Southern Ltd.

The second, announced in October 2009, was for investors who exchanged their interests in Great Southern plantation timber projects from 1998 to 2003 for shares in Great Southern Ltd.

Today’s announcement did not specify which claims were covered by the conditional settlement.

Most of Great Southern’s plantations were bought last November by global investment manager New Forests.

This followed a four-year sale process undertaken by PPB Advisory, which acted as liquidators of the Responsible Entity of the Great Southern plantations schemes.

Under the November agreement, New Forests’ Forestry Investment Trust purchased approximately 80,000 hectares of Eucalyptus plantations in six Australian states, primarily Victoria, South Australia and Western Australia.

This unified ownership and management of Great Southern’s plantations with the underlying land, which the Forestry Investment Trust purchased in 2011.

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