Great Southern investors approach bank

New arrangements struck

By Kate Kachor
Mon 15 Mar 2010

Bendigo and Adelaide Bank has struck new repayment arrangements with a number of Great Southern investors, while the number of investors joining class actions has dropped.

A group of Great Southern investors have entered into agreements with Bendigo and Adelaide Bank to recommence repaying their outstanding loans.

"We certainly are seeing some people entering arrangements with us to recommence repaying their loans," Bendigo and Adelaide Bank spokesperson Will Rayner said.

Rayner would not comment on the exact number of investors involved in the repayment arrangements, but said it was a sign pointing towards greater clarity for all.

"We're also seeing fewer people join up to the class actions so we think ultimately there will be clarity that these are full recourse loans, that the obligations are not affected by the receivership of Great Southern, and that these loans do need to be paid back to Bendigo and Adelaide Bank," he said.

News of the loan repayment agreements comes after the bank increased the number of individual legal cases against investors.

Bendigo and Adelaide Bank now has nine individual cases against investors in the Supreme Court of Victoria.

Last month, the bank launched three cases against Great Southern investors, stating it intended to launch further investor proceedings.

"It is the first case that we've brought and there will be more to follow," Rayner said at the time.

"Obviously you go through a process and if people start repaying then clearly you don't take it to that final step.

"But clearly with anyone who continues not to pay and goes through that process and still does not pay, then we will reserve our right to launch a court action against them."

In December last year, the bank denied it breached debt collector guidelines by contacting Great Southern investors over unpaid loans.

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