Investors caught in the collapse of agribusiness firm, Rewards Group, have sought legal advice after Investec Bank began legal action over unpaid loans.
Macpherson + Kelley (M+K) lawyers principal accredited commercial litigation specialist, Ron Willemsen, said a number of his clients had approached him for advice, though he was unable to reveal the number of clients affected.
“Those few that have been sued that are clients of ours have put in defences,” Willemsen said.
“Their individual cases are likely to get exhumed into the class action and we are hoping to begin that in April.”
A spokesperson for Investec Bank said the financial institution is working with a number of former Rothschild clients it acquired in 2006 who had borrowed funds to invest in what has become the troubled agricultural scheme.
“The bank is endeavouring to satisfactorily resolve, particularly where there is genuine hardship, however will continue to review its legal right to loan repayments,” the spokesperson said.
In July last year, M+K began investigating the possibility of forming a class action case on behalf of around 100 Rewards Group investors.
At the time, Willemsen said a possible class action would be for investors who had invested in projects in 2007 or later in tropical fruits and strawberries and any plantation projects.
Claims against the group and its directors would not impact on any efforts being made to replace Rewards Projects with another company as the responsible entity, he said.
M+K had been monitoring the situation of Rewards Group for many months after clients involved in its proceedings against Timbercorp raised concerns, he said.
Ferrier Hodgson partners Martin Jones, Andrew Saker and Darren Weaver were appointed as joint administrators of the Rewards Group and a number of its subsidiaries, including Rewards Projects Limited, on 17 May 2010.
