Bridgecorp loan book lucky to return 10 cents
Bridgecorp’s receivers may not even be able to recoup ten cents in the dollar from the company’s loan book for investors.
This shaves another few cents off what was already a dismal forecast return of 13-44 cents.
But the estimate doesn’t include any potential returns from overseas assets or legal claims relating to insurance and Bridgecorp directors’ actions before the company failed.
Receivers PricewaterhouseCoopers are working on potential action against Bridgecorp directors, with Rod Petricevic, Robert Roest and three others already facing criminal proceedings.
They are also working with the Official Assignee to see if any other of Mr Petricevic’s trust-held assets can be seized under his bankruptcy.
Bridgecorp won legal costs for its battle to seize his Porsche and stands to gain along with other creditors of Mr Petricevic when the Official Assignee distributes the proceeds of his assets.
But as far as the loan book is concerned, the receivers are hamstrung by the fact that many of Bridgecorp’s loans were subordinated to other lenders.
Bridgecorp’s largest loan relates to the Momi Resort development in Fiji but the latest political unrest in the country won’t make recoveries from that project any easier.
Of two loans over large Australian hotel assets, one has been sold in a receivers’ sale but settlement delays are eroding the small recovery that a Bridgecorp subsidiary as a second-ranking security holder stood to gain.