Bridgecorp investors likely to get less than 10c in the dollar

Bridgecorp founder Rod Petricevic. Photo / Kenny Rodger

The political developments in Fiji have ramifications for Bridgecorp investors who are now likely to get less than 10c in the dollar back from the collapsed finance company.

Bridgecorp collapsed in July 2007, owing about $460 million to 14,500 investors.

Receivers Colin McCloy and Maurice Noone of PricewaterhouseCoopers wrote to investors on April 20 advising of delays in the realisation of overseas assets.

The largest loan the company had was to the Momi Resort development in Fiji.

The receivers said excluding the overseas assets and ongoing legal matters, secured debenture investors were likely to receive less than 10c in the dollar.

Last year investors were advised of a recovery between 13c and 21c, excluding the Momi Resort in Fiji.

The recoveries from the resort in Fiji remained uncertain.

"Recent political developments in Fiji will also impact upon the ability to progress any recovery efforts," the letter said.

Bridgecorp also had loans on two large hotels in Australia. Settlement on one sale has been delayed and a sale agreement on the second has not been achieved.

The timing of payments was also uncertain because the receiver did not have direct control over the realisation process.

The receiver is trying to get money from various insurance policies and a number of court actions, including criminal actions, are under way against directors and other parties.

The receivers noted that the matter of Rod Petricevic's vehicle had been resolved. It has earlier been reported that the bankrupt Bridgecorp boss's Porsche sports car has been sold for $150,000.

The 2005 Porsche 911 was at the centre of a legal row last year after ownership of it was transferred to a family trust.

- NZPA