The Trust Company has been backed by the Federal Court in its bid to appoint a receiver to Gippsland Secured Investors. Yesterday's decision came despite a last minute bid by a group of local investors and business people aiming to save the debenture-funded lender. The hearing followed on from the decision by Justice Kathleen Farrell late last week to re-open the case, as the so-called "rescue group", comprising local investors "of means", offered increased funding for GSI's operating costs, and to protect note-holders from loss.In the Federal Court yesterday morning, Alexander Street, acting for The Trust Company, on behalf of the debenture holders, challenged the action by GSI and the rescue group, questioning whether there had been relevant grounds to re-open proceedings in the first place."It's not an ongoing negotiation process… [and] the court can't and shouldn't micromanage," he said.Street reminded the court that no more costs should be run up as a result of further delays.Justice Farrell agreed, saying she was concerned over the legal ramifications of any further stay of action. "How do I deal with the fact that The Trust Company, having met with the investor group, remains of the view that the matters remain too complex to be dealt with in any reasonable length of time?" she asked."Short of allowing this process to roll on forever, I have to call time and make a decision on the application - to grant it or not to grant it," she said. "We have gone for as long as we reasonably can."Ross Foreman, acting for GSI noted, that his client was asking for a two-week suspension, not for matters to roll on indefinitely; after this period there would either be a scheme ready to be put in place or not. "We are asking that the status quo be maintained for this time," he said."There will be at least A$300,000 available to cover extra costs at the first instance and $1.9 million at the second, if the process goes to that level."The case was adjourned at lunch-time, and all parties and some supporters of the Gippsland investor group returned to the court, when Justice Farrell made a short statement that cleared the way for Trust to call in the receivers.    "It is with a great deal of regret, given the time and effort the investor group has taken, that I am inclined to make the order that the plaintiff has applied for," she said.Justice Farrell then went on to issue an order that the current freeze on debenture redemptions, payment of interest due and all other aspect of GSI's operations be lifted once The Trustee Company had appointed a receiver."I would hope that the investor group would consider working with a receiver," Justice Farrell added. "In a large city the appointment of a receiver will have less effect than for a region, and this is a company that affects a region of Australia."Justice Farrell reserved her reasons for making the orders.Reacting to the decision, The Trust Company's executive general manager