Parties associated with a Timbercorp Securities (Timbercorp) class action have entered mediation talks in an attempt to reach an out of court settlement for more than 2000 former investors.
A spokesperson for Kordamentha, Timbercorp's liquidator, said mediation talks began yesterday and may continue over the coming days.
"It's a genuine good faith attempt at mediation and [may] save everyone a lot of time and effort if it can be mediated," the spokesperson said.
"But who knows what the outcome will be. If mediation fails, the case is listed for hearing late next month."
The mediation talks come after almost a year and a half of work by Macpherson + Kelley lawyers (M+K) to mount its class action case against directors of the failed agribusiness firm.
"The discussions that the mediation (talks) are being held on are on a confidential basis as is usual practice," M+K principal Ron Willemsen said.
"We regard the discussions as worthwhile and they will resume [today]."
The M+K class action is seeking compensation for investors who borrowed to buy into the company's investment schemes in 2007 and 2008.
The proceedings were originally commenced against Timbercorp and its former directors Gary Ladel, Robert Hance, Sol Rabinowicz and Timbercorp Finance on 28 October 2009, however were adjourned to March 2010.
M+K allege Timbercorp engaged in misleading or deceptive conduct with regards to the company's finances.
