Timbercorp Almonds decision – BOSI Security Services Limited v Australia and New Zealand Banking Group Limited & Ors [2011] VSC 255

The decision in the Timbercorp Almonds apportionment case was handed down last week and is available here.

The case arose out of the collapse of the Timbercorp Ltd managed investments schemes. When the Liquidator sought to sell land on which almond orchards were planted as part of various managed investment schemes operated by the Timbercorp group, the mortgagees claimed to be entitled to most or all of the proceeds of sale. The investors (referred to as Growers) claimed an interest as sub-tenants in possession of or licensees with rights over the land. When the Liquidator sought judicial approval for the sale, the Court ordered that the funds be placed into a trust account pending hearing and determination the nature and value of rights held by claimants on the fund (referred to in the various orders as a Rights Proceeding). The first decision creating a fund can be found here. Similar orders were made with respect to land sold from other Timbercorp schemes.

The latest decision is the result of the first Rights Proceeding. The Growers were unsuccessful in their claims against the fund.