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

 


Bridgecorp receiver still eyeing third party claims

Bridgecorp receiver still eyeing third party claims

By Paul McBeth

March 27 (BusinessDesk) - The receivers for Bridgecorp are still actively pursuing potential claims against third parties, having cut an $18.9 million deal with the directors and insurer of the failed lender.

PwC’s Colin McCloy is working with legal counsel to chase third parties in the lead-up to the 2007 collapse of Bridgecorp, although he wasn’t able to give an update on how long the investigations will take, according to his latest report on the receivership.

“We continue to actively pursue a number of potential claims against third parties in respect of their conduct prior to the receivership,” McCloy’s report said. “These claims involve complex legal issues and we are unable to accurately predict a timeframe for their resolution.”

Earlier this month the receiver settled a civil claim with the former Bridgecorp directors, boosting the payout to debenture holders by 4 cents, which is expected to be paid in April.

Investors have so far been repaid 8 cents in the dollar, or $36.6 million, and once the remaining issues in the receivership are settled investors are expected to get a “modest distribution,” McCloy said. He had previously advised investors were likely to get less than 10 cents in the dollar.

The deal came after the Supreme Court last year 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 to cover their defence ahead of repaying investors, freeing up some $20 million to be claimed.

When Bridgecorp collapsed in 2007 it owed some 14,400 investors about $459 million. Since the collapse, the receivers have achieved total realisations of $89.8 million as at Jan. 1 of the $595.3 million book value ascribed to Bridgecorp in June 2007, including intercompany loans.

The Momi Resort development in Fiji created a big hole for the receivers, with no realisations achieved from the $106.6 million advances.

Bridgecorp’s 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

 

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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