Bridgecorp investors to receive first meagre payout next month
Bridgecorp's long-suffering investors are to get their first payout since the company collapsed in July 2007 but will receive between just three and 3.5 cents in the dollar next month.
Monday, 18 July 2011
by Jenny Ruth
Receiver Colin McCloy says in a letter to debenture holders the key issue of what was owed the Inland Revenue Department has been resolved with no additional claims made and IRD's existing claim of $3.9 million reduced to $3.6 million and paid in full.
In his last report in March, McCloy had warned a further IRD claim might be forthcoming and he couldn't distribute anything to investors until IRD's claims were settled.
McCloy confirmes his earlier estimate that debenture holders are likely to recoup less than 10 cents in the dollar although "we continue to vigorously pursue all possible avenues of recovery."
He expects Bridgecorp will suffer a complete loss on its loans over properties in Fiji. In respect of about $50 million of lending on Australian hotels, "discussions with the liquidators of the Australian borrowers have progressed and we are now hopeful of receiving a distribution from the liquidations prior to the end of 2011 although a substantial shortfall is expected."
The majority of Brigecorp's New Zealand assets have been realised although McCloy said he continues to pursue guarantors and other available avenues to recover money, including claims against third parties and potential insurance claims. "These claims involve complex legal issues and we are unable to accurately predict a timeframe for their resolution," he says.
McCloy is also working with legal counsel and various government authorities over potential legal action against Bridgecorp's directors and the official assignee over claims to be made in the bankruptcies of former managing director Rod Petricevic and fellow executive Robert Roest.
All five Bridgecorp directors are set to face trial on September 5 on charges which carry a maximum penalty of five years in jail and/or fines of up to $300,000.
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