Eleven years after the collapse of the Banksia Financial Group receivers acting on behalf of investors in the failed Kyabram company are continuing the hunt for compensation.
Last week Banksia Securities Receiver John Lindholme informed debenture holders, through his latest communication, that he would now be focusing his complete attention on Elliott Entities after agreeing to a settlement of $1.25 million with O’Bryan Entities.
Mr Lindholme is a special advisor to one of the world’s “Big Four” accounting firms KPMG.
He has been at the forefront of the Banksia Financial Services investigation since his appointment as special purpose receiver to Banskia Securities Limited.
Mark Elliott and Norman O’Bryan were at the centre of the investigation surrounding the 2012 collapse of the financial group, which saw $660 million from almost 16,000 investors the focus of a decade-long legal proceeding.
Barrister O’Bryan and four others lawyers, barrister Michael Symonds, solicitors Anthony Zita and Alex Elliott and legal firm managing director (the late) Mark Elliott were the individuals at the heart of the original court case.
Mr O’Bryan declared bankruptcy during the proceedings, but a settlement has been agreed on — subject to certain conditions, including court approval.
A circular to debenture holders on May 9 said the decision to accept the $1.25 million settlement was taken because a substantial dividend from Mr O’Bryan’s bankrupt estate was unlikely.
Mr Lindholme, in the report, said Real Property and ASIC searches had confirmed the O’Bryans did not have any identifiable assets that could be used to meet any judgement.
He said the proposed $1.25m settlement exceeded any return to debenture holders that would result from the continued prosecution of those parties.
“Completing a settlement with the O’Bryan Entities will also enable me to continue to progress and focus on claims against the Elliott Entities,” he said, in the report.
The hearing seeking court approval of the settlement with Mr O’Bryan and the O’Bryan Entities is scheduled for June 16, 2023.
In October 2021 Victorian Supreme Court’s Justice John Dixon ordered a payment of $11,700,128 to investors, plus court costs.
So far 91.5 cents in the dollar has been distributed to debenture holders and at least one further distribution is expected.
Mr Lindholme told debenture holders he had identified Elliott Entities had significant cash assets and real estate holdings.
“The amount of those assets is likely to exceed the value of the amount currently owing under the Remitter Judgment,” he told investors.