No silver lining for Bridgecorp investors

Investors looking for a silver lining in the latest update on the Bridgecorp receivership will be disappointed with no sign of any improvement in the figures.

Monday, 3 May 2010

Receivers Maurice Noone and Colin McCloy of Pricewaterhouse Coopers only managed to recoup $400,000 in the six months ended January 1, according to their sixth report on the bevy of Bridgecorp companies. That keeps their estimated recovery at 10 cents in the dollar for investors.

Of the $133 million that has been recovered where Bridgecorp was a lower ranked creditor, it has received $16.1 million, $50,000 of which came in the latest six month period. Where it had no prior charge holders, the receivers have recouped $7.3 million, taking the total Bridgecorp receipts from New Zealand loans to $23.4 million.

The receivers reiterated the problems with realising any return from the failed Momi development in Fiji, where some $106.6 million was advanced by Bridgecorp companies.

"The potential outcome remains uncertain and it is likely that a complete loss will be suffered on this loan exposure," Noone and McCloy said.

McCloy and Noone were pessimistic about recovering the $50.5 million from Australian and other offshore loans, saying prior mortgagees had taken enforcement action in respect to these assets.

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