Thousands of Australian investors whose retirement funds are tied up in the Fincorp collapse met in Sydney yesterday to learn what will become of their savings.
The Sydney-based, privately-owned Australian funds management and property investment group went into administration a week ago owing its investors A$200 million ($228million) and external financiers a further A$90 million.
Fincorp's 7800 investors, whose average age is 60, were invited by administrators KordaMentha.
The corporate recovery firm was to present initial findings of investigations into the finances of the 22 companies forming the group.
Fincorp has a similar structure to the collapsed Westpoint property empire, which folded in February last year owing A$300 million to its 4000 investors.
Law firms are queuing up to help investors seek compensation.
Mitchell Brown, of Slater and Gordon, which represented Westpoint investors in a class action, said the law firm was considering pursuing a similar action against Fincorp.
Fincorp offered high interest to investors and used their funds to develop property.
In 2005, the NSW Supreme Court ordered it to offer full reimbursement to anyone investing in the company between February and September 2004 because of a misleading and incomplete prospectus.
