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OPI Pacific Finance receiver squeezes out 1.67 cents in the dollar for beleaguered investors

OPI Pacific Finance receiver squeezes out 1.67 cents in the dollar for beleaguered investors

The receivers of OPI Pacific Finance, formerly MFS Pacific Finance, have squeezed out a 1.67 cents in the dollar return to investors in the collapsed property financier that's now under Securities Commission investigation.

In a letter to OPI's nearly 11,000 investors who are owed about NZ$274.9 million, receiver Colin McCloy of PricewaterhouseCoopers says the distribution will bring the total amount repaid to secured debenture holders to 23.86c in the dollar, based on amounts owed to them at the start of OPI's moratorium in May 2008.

McCloy said any future distributions to secured debenture holders were primarily dependent on recovery from claims in the liquidations in Australia of related firms Octaviar (formerly MFS) and Octaviar Administration Pty Limited.

"Unfortunately we are unable to give a timeframe on when the liquidators will begin to assess OPIs claims, how long this process will take, or the likelihood of success or payout of those claims. In the meantime, we are continuing to assess and pursue other recovery actions against borrowers, guarantors, and third parties," McCloy wrote.

"Though as previously advised, all borrowers are in financial difficulty or are already in some form of insolvency, and OPI primarily holds second ranking mortgages in respect of the property. These factors make it unlikely that there will be any material recoveries from those parties."

OPI was placed in receivership by trustee Perpetual Trust in September 2009, making it one of the bigger finance companies to fall over from the dozens to have failed since 2006.

After an initial probe into OPI's affairs Serious Fraud Office (SFO) CEO Adam Feeley told interest.co.nz last month that the evidence suggested it was a more appropriate case for the Securities Commission to investigate. The Securities Commission says it is investigating OPI.

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