Bridgecorp's more than 14,000 beleaguered secured debenture holders will finally get some money back four years after the property financier run by Rod Petricevic collapsed owing them about NZ$459 million.
Bridgecorp receiver, PricewaterhouseCoopers partner Colin McCloy, says that based on funds held and anticipated receipts, an interim dividend of between 3 cents and 3.5 cents in the dollar will be paid to secure debenture investors in the week starting August 15. He said the payment, tipped by interest.co.nz in May, was possible because matters with the Inland Revenue Department had been resolved.
“Unfortunately, whilst we continue to vigorously pursue all possible avenues of recovery, we remain of the view that total recoveries to secured debenture holders will be less than ten cents in the dollar,” McCloy said. See the receiver's full letter to investors here.
McCloy said the IRD's NZ$3.9 million claim had been reduced to NZ$3.6 million and paid in full.
Bridgecorp was tipped into receivership by trustee Covenant Trustee Company on July 2, 2007.
Former Bridgecorp managing director Petricevic and ex-finance director Robert Roest have a trial set for next March stemming from charges brought against them by the Serious Fraud Office. Petricevic, Roest, former Bridgecorp chairman Bruce Davidson, and two other ex-directors Gary Urwin and Peter Steigrad, are also facing charges brought against them by the Securities Commission , now Financial Markets Authority, with that case due in court in September.
The FMA alleges the directors made untrue statements in investment statements and registered prospectuses in December 2006. The statements concerned Bridgecorp's overall financial position, solvency, and liquidity which the FMA believes had been substantially deteriorating since June 30, 2006. These charges carry a maximum penalty of five years in jail or fines of up to NZ$300,000.
The SFO's charges against Petricevic and Roest include the allegedly fraudulent acquisition of a luxury boat, the Medici, bought using Bridgecorp funds totalling NZ$1.8 million. It also alleges NZ$1.2 million of "dishonest payments" of Bridgecorp funds authorised by Petricevic to a business called ABb operated by Janita Wright, a personal acquaintance of Petricevic. These charges carry a maximum potential jail term of seven years.