Timbercorp Securities is at risk of losing its extended Australian financial services licence (AFSL) if a decision over the future of its managed investment schemes (MIS) and responsible entity (RE) is not finalised by June this year.
Representatives of the failed agribusiness firm have until 30 June to settle legal issues over a number of the group's MIS and any proposal to appoint a new RE otherwise the licence will be revoked, Supreme court documents dated 15 March said.
ASIC cancelled Timbercorp's AFSL in 2009, however the corporate regulator allowed the licence to continue under section 915H to provide financial services for the benefit the investor/growers in the schemes, documents said.
"In the absence of a further extension by ASIC of the licence, Timbercorp Securities will no longer be in a position to provide financial services to assist in the informal winding up of the schemes from 30 June 2011," the documents said.
"Thus, quite apart from the obligations under the existing contracts, and the risks to those contracts if completion is frustrated or delayed, there is an added imperative that finality be achieved in the winding up prior to 30 June 2011."
Timbercorp liquidators, Mark Anthony Korda and Leanne Kylie Chesser, returned to court this month to seek direction over a number of Citrus projects.
The schemes are the 2004 Timbercorp Citrus Project and the 2005 Timbercorp Citrus Project.
Class action proceedings against Timbercorp are expected to commence in the Victorian Supreme court in April, Macpherson + Kelley said.
