Timbercorp investors lost their investments when Timbercorp collapsed in April 2009.
But the investors did not lose their liability to repay their loans with Timbercorp Finance. The loans remained due and payable with interest.
For a while, KordaMentha who were appointed receivers of Timbercorp Finance took no recovery action, as they waited for an investor class action to be concluded.
Then, when the class action failed, they took recovery action, but were stayed pending a High Court Appeal which found that the investors could still defend the recovery claims.
But now, the Supreme Court of Victoria has shut the door on those defences, and the investors will have no choice but to pay up or go bankrupt.
For my case note, click