Bridgecorp recoveries still unclear
Bridgecorp’s receivers say are still unable to predict how much investors may recover from the company.
Previously receiver PricewaterhouseCoopers had estimated that investors might recoup 13-44% of their capital.
But last December they told investors that this forecast was being hammered by deteriorating economic conditions and it was too difficult to predict the outcome.
PWC hopes to provide another update before the end of March on the matter, but in their latest report they have been unable to make any predictions.
Most of the company’s loans were not held as first mortgages, meaning that of $130 million cashed up from the loans by the end of 2008, Bridgecorp had claimed just $13.6 million.
Receivers had on hand just $9.4 million at the start of this year after accounting for the cost of the receivership.
Bridgecorp owes $459 million to more than 14,000 secured debenture investors.
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Comments and questions2
I was an investor with Bridgecorp and I am beginning to get pissed off with PWC receivers who keep stalling the payment of money being owed to investors. Its been over 18 mths since the collaspe of Bridgecorp and they keep blaming the financial crisis in the delay of funds being credited back to secured debenture holders like myself. They had plenty of time to give money back to investors before the crisis happened.
I agree with the above comment. The money I had invested with Bridgecorp was due to replace my ailing vehicle. Now my vehicle is on it's last legs and I can't even replace it with a used vehicle because I don't know how much I'm getting back from Bridgecorp. The uncertainty of not knowing is killing me. All we get is more and more bad news while the receivers and lawyers are lining their pockets very nicely. I have not heard of a singe financial advisor or director of a failed finance company appologise for loosing investores their money.