Bridgecorp investors to get first payout

The former chief executive Bridgecorp, Rod Petricevic Photo / Paul Estcourt

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 $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 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.

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.

- INTEREST.CO.NZ