Australian Executor Trustees (SA) Ltd

Australian Executor Trustees (SA) Ltd

More than 5000 investors placed their savings into the SEAS Sapfor forestry scheme in South Australia. The scheme was administered by companies that became part of the Gunns group, with Australian Executor Trustees (SA) Ltd (a subsidiary of the listed IOOF Group) acting as security trustee. In 2012, the Gunns group collapsed into insolvency and the investors (known as Covenantholders) lost the entirety of their investment after AET prematurely released the scheme’s security arrangements. 

With funding from Omni Bridgeway, the Covenantholders were able to appoint an additional trustee to investigate and pursue their claim. In October 2019, the claim succeeded on all points at first instance with a damages award of AUD 77m plus indemnity costs.  

The defendant appealed the judgment and Omni Bridgeway funded the defence of the appeal which was heard on 2 and 3 April 2020 by the NSW Court of Appeal (Gleeson JA, Leeming JA and Emmett AJA). The primary issue in the appeal concerned the liability of the Second Defendant, Sparke Helmore Lawyers, to the First Defendant, its former client AET.
 
In 2021, the New South Wales Court of Appeal affirmed in full, the decision of the Supreme Court of New South Wales and confirmed the award of compensation. 
 
Link Market Services were engaged in December 2021 by the additional Trustee to provide registry and distribution services. 

Covenantholders can contact Link Market Services by email ([email protected]) or by phone on 1300 853 598 if they require assistance.