Parties settle the Great Southern proceedings
Bendigo and Adelaide Bank (the Bank) has entered into an agreement to conclude the class actions brought by investors in managed investment schemes operated by Great Southern.
Under the agreement, which is subject to approval of the Court, the Bank's borrowers who are members of the class actions have admitted that their loans are valid and enforceable and have provided broad releases from future litigation.
The principal and ordinary accrued interest remains payable by borrowers. However, the Bank has agreed to waive unpaid interest relating to overdue amounts, being the interest (additional to ordinary interest) that is payable by borrowers in default, which is accrued and unpaid up to the date the Court approves the settlement.
This waiver will not result in any adjustment to the accounts of the Bank as unpaid interest relating to overdue amounts has not previously been recognised as revenue.
Bendigo and Adelaide Bank Managing Director, Mike Hirst, said he was very pleased with the settlement.
"We have always maintained that the Bank's conduct was at all times appropriate and the Bank is entitled to be repaid its loans to Great Southern borrowers.
"The terms of this agreement endorse this position and we look forward to working with the borrowers as they repay their debts to us," Mr Hirst said.
Borrowers can contact the Bank on 1300 677 885 to discuss the repayment of loans.