Good news for Council, but still millions lost.
Tuesday, March 30th, 2010Following on from our earlier post on the debacle where BMCC had at least $11m invested with failed investment house Grange Securities, part of the bankrupt Lehman Brothers bank that was one of the biggest casualties of the global financial crisis.
The SMH reports that a class action of councils has been successful in a legal attempt to apply to Lehman Brothers administrators for recognition of their claims. In short, instead of being paid as little as 5c in the dollar, BMCC may realise a little more. Katoomba Leura Online understands the large anticipated loss has yet to be fully recognised in BMCC financial results, so future rate rises may be on the way.