AU$75 million court action against AET
Friday 15 Mar 2019
The investors’ lawyers, Piper Alderman, allege that IOOF subsidiary, Australian Executor Trustees, failed in its duty as security trustee to protect the investors’ interests in the Southern Australian Perpetual Forests (Sapfor) scheme. Investors in Sapfor were promised a safe long-term investment into land and trees in Mount Gambier’s green triangle area, but in 2012 saw their investments reduced to nil as a string of corporate blunders allowed the scheme assets to be consumed in the insolvency of Tasmanian forestry giant Gunns.
It is claimed AET acted negligently and in breach of trust by prematurely releasing the scheme’s security arrangements before receiving sale proceeds worth AU$55m. The money was due to the investors, but never reached them – instead Gunns used it to repay its debts to bankers.
The detailed background to this particular case can be read here
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