AUSTRALIA’S largest bank, ANZ, is about to become insolvent.
The Federal Court is set to hear the case of a woman, Lisa Young, who has been fighting to get her debts discharged from ANZ and to get the bank to repay her.
The woman, who claims to have been forced into debt bondage by her employer, is seeking around $3 million in compensation.
“The Commonwealth’s interest in this case is to make sure that the debtor and ANZ are paid the full amount that they owe,” ANZ lawyer Mark Macdonald said at the hearing on Monday.
“It is an important case for the Australian public.”
Young’s husband, Michael Young, has been working for ANZ for 25 years, but has also been owed a significant amount of money, about $2 million.
Michael Young told news.com.au he has been on a liquidation plan for the past three years.
He said he has “been told that it is likely to be the last time that we will be able to work at ANZ”.
The Youngs are due to be released from custody on April 7.
They have not spoken to the media about the case.
Young, who works for a Melbourne-based company, says she is now in a financial limbo.
She said her husband’s work has stopped and she is being forced to work from home.
It’s an issue she has been dealing with for a long time, she said.
A spokesperson for ANR Bank declined to comment on the case but did say the company would “make every effort to assist” Young and her family.
This is not the first time Young has been involved in legal disputes.
In 2013, she and her husband, who was also a bank employee, were ordered to pay more than $3,000 in court costs for an alleged debt from a financial planner.
An ANZ spokesperson told newscom.ae the company was working with the family to “restore financial stability”.
An official from ANR said it was too soon to comment.
ANZ is Australia’s largest bank and has been hit by a series of bank collapses in recent years.
The company has also experienced a series the financial meltdown, with its assets falling by more than 20 per cent between 2010 and 2016.
Since 2010, ANR has had to seek financial help from the Federal Government for around $1 billion.
On Monday, ANA Finance Minister Kelly O’Dwyer said ANZ had been “miserable” and the government would be taking a “significant step” towards its own financial restructuring.
“We’re looking at a significant step forward in our financial planning as well as a reduction in our debt service charges, and we’re making further steps towards a full and swift resolution,” she said, without giving any further details.
Her office said the government had committed $1.1 billion towards the bank’s “financial restructuring”.
ANU’s senior lecturer in business law, Chris Williams, told news at the time that ANZ was in a “very difficult position”.
“If this were to happen to ANZ as a result of an Australian bankruptcy it would be a very significant setback for the bank and the economy,” he said.
They are now facing the risk of being insolvent.”