A litigator acting on behalf of Forest Enterprises Australia (FEA) investors has indicated there is enough evidence to support a class action against the failed agribusiness group.
Legal firm Macpherson + Kelley Lawyers (M+K) has sent out letters to the receivers, administrators and the former directors of FEA and its responsible entity FEA Plantations Ltd.
"We now have what we believe is a soundly based claim on behalf of all investors who invested in calendar year 2008 or 2009," M+K principal Ron Willemsen said.
"Those letters are going out and we're excepting instructions from lots of new people presently and it's most likely that will result in a class action taking shape a few months down the track."
Willemsen said the potential class action is likely to focus on challenging the validity of the grower/investor loans and will seek compensation through insurance policies held by FEA Plantations Ltd and the company's directors.
To date, the number of growers who invested in the 2008 managed investment scheme (MIS) stands at 2813, while 565 growers invested in the firm's 2009 scheme.
The amount raised by FEA through the MIS in 2008 was $119 million and in 2009 it was $16.3 million.
Meanwhile, FEA's administrator BRI Ferrier and its receiver Deloitte are set to battle it out in court over unresolved disputes.
"As we have proceeded with the voluntary administration, we have met with objection by the receivers that we are exercising rights or claiming assets to which they are entitled as falling within the terms of the banks' securities," the latest BRI Ferrier report to creditors said.
The receivers are seeking authority to terminate lease agreements, the report said.
The receivers' applications were set down for hearing on 29 September in the Victorian Registry of the Federal Court of Australia.
FEA went into voluntary administration in April this year.
