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

 


Bridgecorp receiver cuts $18.9 mln settlement

Bridgecorp receiver cuts $18.9 mln settlement with directors, insurer

March 12 (BusinessDesk) - The receiver for Bridgecorp has reached a deal with the former directors and insurer of the failed lender, which will boost the payout to investors by 4 cents in the dollar.

PwC’s Colin McCloy reached an $18.9 million settlement over a civil claim against the directors that they had breached their duties under the Companies Act, he said in a statement. The deal will let the receiver pay an interim distribution of 4 cents in the dollar, which is expected to be made in March, taking total recoveries to 12 cents in the dollar.

The Financial Markets Authority signed off on the deal, dropping its own civil proceedings against the Bridgecorp directors, saying it was the best outcome for investors in the failed lender.

“It is pleasing to be in a position to make a distribution considerably sooner than would have otherwise been the case,” McCloy said.

Once the receivership is completed, McCloy said there will likely be a modest distribution paid to investors. In his September update, McCloy told investors they would likely receive less than 10 cents in the dollar.

Last year, the Supreme Court set aside a Court of Appeal decision to let former Bridgecorp directors Peter Steigrad, Bruce Davidson and Gary Urwin use their directors and officers liability (D&O) policy cover their defence ahead of repaying investors, freeing up some $20 million of cover to be claimed.

Bridgecorp collapsed in 2007, owing some 14,500 investors about $459 million. Its former managing director Rod Petricevic and chief financial officer Rob Roest received lengthy jail terms for misleading investors and making false statements, with an extra time added over charges brought by the Series Fraud Office. Steigrad and Davidson received home detention and Urwin was sentenced to two years’ jail.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news