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Bridgecorp investors to get 1st repayment; But no more than 3.5c in dollar 4 years after finance company collapse

Bridgecorp investors to get 1st repayment; But no more than 3.5c in dollar 4 years after finance company collapse

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.

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8 Comments

Poor B'corp investors!

If only the English family and mates had invested in B'corp too - then everyone would get all their money back + interest! ;-D

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Munter, Bridgecorp collapsed well before (July 2, 2007) the Crown retail deposit guarantee scheme was put in place by Michael Cullen and the Labour-led government in October 2008.

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Oh, so I guess in that case it means only the minister of finance and his buddies would have got back their money?!

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Brilliant.

If we're real lucky we'll get a CGT and force all those Mum's and Dad's to put their money into productive uses ... like Bridgecorp.

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Nah mate, they'll all buy more houses. You can't lose with houses!

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All those thousands of loud, fat, drunken brothers-in-laws at BBQs across the nation between 2003 and 2008 can't possibly have been wrong.

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They'd have to have a lot of dollars to get their 3.5 cents in to be able to afford a house with the payout...

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The receivers have confirmed a 3.5 in dollar repayment is going out this week:

The Receivers of Bridgecorp Limited (In Receivership & Liquidation) are pleased to confirm an interim dividend will be paid to secured debenture investors this week.

Bridgecorp Receiver, PwC Partner Colin McCloy says “last month we signalled an interim dividend of between 3 and 3.5 cents in the dollar. We are pleased to announce an interim dividend of 3.5 cents is now being distributed.”

The Receivers remain of the view total recoveries to secured debenture holders will be less than ten cents in the dollar."

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