COURT APPROVES SLATER AND GORDON'S REFINANCING AND SETTLEMENT SCHEMES
Written on the 15 December 2017 by Paris Faint
SLATER and Gordon has emerged from a trading halt following the Federal Court's decision to approve two of the embattled firm's creditors' schemes.
Firstly, the Court has given Slater and Gordon a nod to go ahead with the recapitalisation scheme it formed with senior lenders.
The Court has also approved a settlement scheme for the class action brought against Slater and Gordon by rival firm Maurice Blackburn, spearheaded by aggrieved investor Matt Hall.
In July, Slater and Gordon agreed to settle Hall's class action for an approximate $36.5 million but said the action would not amount to an admission of liability.
It also released a statement at the time saying that the settlement should "resolve any and all" potential shareholder claims against the company and its directors.
The Hall class action was officially dismissed by the Court this morning, with the settlement to take place through an approved shareholder claimant scheme.
The Court has also provisionally awarded $8.5 million in legal costs, and will later decide on a further $13.3 million in fees sought by the Hall proceeding.
In a separate matter, the Court has allowed Slater and Gordon's former auditor, Pitcher Partners, to file a cross claim against the firm.
Pitcher Partners was Slater and Gordon's auditor up until 30 June 2015.
Acting on behalf of shareholders, Johnson Winter and Slattery launched a class action against Pitcher Partners in November, citing the auditor's poor work over Slater and Gordon's botched operations in the UK.
Pitcher Partners will need to officially file and serve its cross claim against Slater and Gordon by 23 February 2018.
Ever since Slater and Gordon purchased UK-based business Quindell in 2015, the company has been beset by legal troubles which have resulted in an unprecedented share price drop which shaved around 98 per cent off its total market cap.
Business News Australia
Author: Paris Faint