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Still no date for distribution to Bridgecorp investors

Receivers of failed finance company Bridgecorp are still unable to say when they might be able to make any payouts to secured debenture holders.Receivers were appointed in July 2007 to the company, in which nearly 14,400 secured debenture holders had inve

NZPA
Wed, 15 Sep 2010

Receivers of failed finance company Bridgecorp are still unable to say when they might be able to make any payouts to secured debenture holders.

Receivers were appointed in July 2007 to the company, in which nearly 14,400 secured debenture holders had investments totalling $459 million.

In the seventh report on Bridgecorp's state of affairs, receivers Colin McCloy and Maurice Noone of PricewaterhouseCoopers said the timing of distributions to secured debenture investors remained uncertain.

That was due to the nature of Bridgecorp's assets and outstanding taxation issues.

Previously the receivers advised secured debenture investors to expect less than 10c in the dollar.

In the latest report, which covers the time between January 2 and July 1, the receivers said future cash inflows were largely dependent on the realisation of overseas loan assets and insurance/legal matters.

Of the 32 loans that represented more than 85 percent of the total value of New Zealand loans, there had been gross recoveries of more than $157m as at July 1.

But only $17.8m of that amount was received by Bridgecorp, with the rest being paid to prior ranking debenture holders.

Of the remaining loans not subject to prior ranking securities, $7.3m had been recovered as at July 1, bringing the total Bridgecorp receipts from New Zealand loans to $25.1m.

The report also said a complete loss was likely on the $106.6m loan exposure in respect of the Momi development in Fiji.

Of $50.5m due on Australian and other offshore loans, most related to lending on large hotel assets. Prior mortgagees had taken enforcement action on those assets.

The receivers said they continued to pursue a number of potential actions against certain Bridgecorp directors and other parties regarding conduct before receivership. They were working with legal counsel and various government authorities to coordinate action.

NZPA
Wed, 15 Sep 2010
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Still no date for distribution to Bridgecorp investors
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