BENDIGO and Adelaide Bank has emerged as backer of forestry manager Black Tree, which is fighting in the courts to reinstate leases on a small parcel of land that Great Southern receiver McGrath Nicol terminated and is trying to sell.
Bendigo Bank is said to be providing a working capital facility of about $5 million to Black Tree. Bendigo has large exposure to growers' loans and is owed about $450 million, according to The Australian Financial Review .
Many investors who borrowed money to put into Great Southern managed investment schemes (MIS) have refused to repay loans, and pin their hopes on a class action against lenders.
McGrath Nicol terminated the leases at land title offices on the 7000 hectares of land in Victoria, Tasmania, South Australia and Western Australia six to nine months ago, after it was unsuccessful in finding a responsible entity (RE) for 2007 and 2008 schemes.
McGrath Nicol is trying to sell the land as part of a $415 million deal with Canada's Alberta Investment Management Corp (AIMCo).
The receiver is believed to want to sell the land unencumbered by timber leases, as it would then fetch a higher price for banks. The banks are owed more than $100 million from the 2009 collapse of Great Southern - the largest MIS operator.
