Bendigo prepares to bankrupt borrowers
Bendigo and Adelaide Bank and Timbercorp Finance are being hit with waves of letters from investors refusing to pay principal and interest on loans taken out to finance investments over managed investment schemes.
The banking analysts at Merrill Lynch wrote in a recent report that Bendigo's earnings could fall by 90 per cent if half the $615 million in loans to Great Southern MIS investors were written off.
Bendigo has appointed the Perth office of lawyers Allens Arthur Robinson to ensure the loans are repaid and, if necessary, it will move to bankrupt any of the 8,200 investors in the Great Southern projects that renege on loans.
But Ron Willemsen from solicitors Macpherson + Kelley said there are very strong grounds for the loans to be declared void and unenforceable. Willemsen says he has 600 Great Southern clients who owe about $45 million, which is being contested.
Source: The Sheet