About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
deposit rates

Two of three Compass loans total duds

Investors in Bridgecorp-related Compass Capital will have to rely on insurance for any pay out.

Tuesday, 25 May 2010

by Paul McBeth

Investors in the Bridgecorp-related Compass Capital will probably have to rely on any return on their principal from the receiver's insurance claim after the proceeds from two of the company's three loans were soaked up by prior-ranking mortgages.

Receivers Grant Graham and Brendon Gibson of KordaMentha told investors they will pursue the insured section of its loan to Bendemeer Developments after the secured property sale left nothing for Compass Capital's second mortgage. Similarly, they said they will look to progress an insurance claim on the second-ranking mortgage over the Kaimai Palms residential development properties after the first mortgagee appointed receivers to that development.

"There will be claims made on the company's insurer in respect of each of the three loans," Graham and Gibson said in their third report. "Based on our preliminary estimates, as there will be a shortfall to secured bondholders there will be no funds available to unsecured creditors."

Compass was set up in 2006 by failed financier Bridgecorp to buy loans from the rest of the group using funds raised from the bonds, and act as a warehouse for the finance company's better quality assets. It fell over last year, owing some 500 investors about $16.1 million in principal and interest.

The vehicle held a Lloyd's of London insurance policy, covering 100% of the principal of all loans up to $3.5 million each, though only $20 million could be paid out in a year.

A silver lining in the report comes from the sale of some properties owned by Hermes Development at Mangawhai for about $846,000, which will be used for the first part distribution to investors.


Commenting is closed


Printable version


Email to a friend
Newsletter Signup

Weekly Updates including news and commentary

Today's Best Bank Rates
Heartland Bank 2.75
Based on a $50,000 deposit    More Rates »
Today's Top 5 Deposit Rates
NZCU Auckland 3.25 Success Saver
Heartland Bank 2.75 Heartland Direct Call
Westpac 2.60 Online Bonus Saver - Potential Rate
Westpac 2.55 Online Bonus Saver - bonus rate
Heartland Bank 2.50 Heartland Business Call
Based on a $50,000 deposit    More Rates »
Find a Rate
Show me the rates for
invested over
Use the full calculator
Cash PIE Rates
Institution Rate 30% 33%
ANZ 0.10 0.10 0.11
ASB Bank 0.40 0.41 0.42
ASB Bank 0.55 0.59 0.56
ASB Bank 0.60 0.61 0.64
ASB Bank 0.65 0.66 0.69
ASB Bank 0.70 0.72 0.75
BNZ 0.10 0.10 0.10
Heartland Bank 2.25 2.59 2.70
Kiwibank 0.75 0.77 0.88
Kiwibank 1.75 1.81 1.89
Nelson Building Society 3.75 3.90 4.08
RaboDirect 0.75 0.77 0.80
SBS Bank 1.80 1.86 1.94
TSB Bank 1.60 1.64 1.71
Westpac 0.35 0.36 0.38
Westpac 0.10 0.10 0.11
Westpac 2.10 2.16 2.26

More »

Previous News
Latest Trends
Coming Soon

Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.

© Copyright 1997-2017. Tarawera Publishing Ltd. All Rights Reserved.