Bridgecorp investors to get 3.5 cent payment this week
Aug. 18 (BusinessDesk) – Debenture holders in failed finance company Bridgecorp Ltd. will get a payment of 3.5 cents in the dollar this week, but not much more is in the pipeline.
Receiver Colin McCloy of PricewaterhouseCoopers said the interim dividend is being distributed at the top end of the range flagged last month, though total recoveries will probably be less than 10 cents in the dollar. That means the receivers will pay out about $16.1 million to more than 14,000 investors owed $459 million.
The receivers had $16.7 million on hand at the start of the year, according to their last report in March. That couldn’t be distributed until preferential claims, including the Inland Revenue Department, had been paid.
PwC’s McCloy and Maurice Noone had recovered $157 million as at Jan. 1, though Bridgecorp had received just $17.8 million due to prior ranking charges, the March report said.
The Bridgecorp group of companies collapsed in mid-2007 and resulted in criminal charges against the board, including managing director Rod Petricevic and finance director Rob Roest. Petricevic unsuccessfully tried to have the charges thrown out after Legal Aid wouldn’t pay his bill.
Last month, the Court of Appeal overturned former Bridgecorp director Peter Steigard’s discharge on four out of 10 criminal Securities Act charges.