A financial settlement against the directors, solicitors and auditors of the failed investment firm Banksia Securities has been granted by the Supreme Court.
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His Honour Justice Robson approved the $13.25 million settlement in August. It will increase the amount repaid to investors by about 2c in the dollar, taking their returns to around 82c in the dollar.
Kyabram-based Banksia Securities collapsed in October 2012, owing its 16,000 mainly rural investors around $660 million.
It’s estimated about 1450 investors lived in the Ballarat and district area.
Kyabram Debenture Holders Action Group co-founder Don McKenzie says the settlement was as good as might be expected, given the limited insurance the directors and auditors were required to hold.
“They were required to hold just $10 million each,” said Mr McKenzie. “It’s just ridiculous. You’d insure your home for more.”
The litigation against Banksia’s trustees continues.
