Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Bridgecorp settlement

News release

12 March 2014

Bridgecorp settlement

The Financial Markets Authority (FMA) has consented to an $18.9 million settlement between the receiver of Bridgecorp, the Bridgecorp directors, and their liability insurers. FMA has agreed to end its own civil proceedings against the Bridgecorp directors once the settlement sum has been paid.

FMA says the settlement represents the best outcome for Bridgecorp investors in the circumstances, and will ensure that investors receive the funds in a timely way.

Bridgecorp Ltd and Bridgecorp Investments Ltd were placed in receivership in July 2007 with approximately $459 million owing to 14,500 investors. Two of its former directors, Rodney Petricevic and Robert Roest, are each serving over six years imprisonment following successful prosecutions taken by FMA.

FMA Head of Enforcement, Belinda Moffat, said the decision to discontinue its civil proceedings against the Bridgecorp directors was not taken lightly.

“We assessed the public interest in continuing with the claim, and after considering the personal financial position of the directors and the settlement sum achieved by the receivers, and the fact that FMA would not be able to achieve a greater recovery, it was clear that it would not have been an appropriate use of taxpayers’ money to proceed,” said Ms Moffat.

“Our claim would have gone after the same pool of funds that the receiver has reached a settlement on, so there was little, if any, money left to pursue.

“It was also our view that the custodial sentences handed down in the criminal trial had sent a very strong deterrence message to the market which continues to be felt today,” said Ms Moffat.

FMA has a number of ongoing civil proceedings against finance company directors which it is currently assessing. Announcements on these will be made in the near future.

A list of finance company cases before the Court can be found here: http://www.fma.govt.nz/laws-we-enforce/enforcement/prosecutions-and-proceedings/finance-company-cases-before-the-court/.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news