LETTERS regarding a class action will be sent to all people owed money in the Banksia collapse next week.
Solicitor Mark Elliott is pursuing nine defendants over the lender’s collapse and said there had been strong interest in the action.
“I drafted a letter over the weekend that will go out to the 16,000 debenture holders by mid next week,” he said. “It will answer the debenture holders’ questions.
“The class action website is well advanced and will be up and running with meaningful information by the end of the month. We’re making good progress everywhere.”
Mr Elliott said Banksia directors, Cherry Fund, The Trust Company and Bendigo-based auditors Richmond Sinnott and Delahunty Chartered Accountants had filed notices of appearance as defendants.
“There’s no point suing Banksia for money if you’re accessing the money watermarked for debenture holders,” he said. “This is trying to access other forms of money, principally insurance. It’s not bad luck they’ve lost $300 million... it’s got to be more than that.”
Mr Elliott said he expected the class action to begin in about 12 to 18 months. Banksia is being liquidated by McGrathNichol, with the company’s loan book recently listed for sale.
A McGrathNicol spokesman said a range of institutions had expressed interest in the loans.
Strathfieldsaye resident Jim Stein, who lost $130,000 in the collapse, said it had been hard to find out what was happening with the liquidation and class action.
“There has been a lack of information... it would be good to find out what is going on,” he said. “I support the class action and I’ve been speaking to some people in the banking industry who say we’ve got a very good case.”