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

 


RESEND: Bridgecorp receiver cuts $18.9M deal with directors

RESEND: Bridgecorp receiver cuts $18.9 mln settlement with directors, insurer

(Fixes expected payment date in 2nd graph)

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 April, 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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news