KEY POINTS:
Bridgecorp investors could receive anything between 25c and 74c for each dollar invested, with the wide range partly due to complex offshore investments, receivers said today.
However, investors were unlikely to receive any money for the next six months, and then it not likely to be in a lump sum but rather as loans were recovered.
"We appreciate that the level and timing of returns will come as a shock to many investors. We regret that this letter could not provide you with more positive news," PricewaterhouseCoopers partners Colin McCloy and John Waller said in a letter to secured debenture holders.
Most assets were unlikely to achieve book value, the receivers said.
Excluding Bridgecorp's offshore loans and receivables, the receivers estimated they could recover between $116.1 million and $182.1 million, before costs, of the estimated $438.2 million assets.
Bridgecorp's Australian, Fijian and other offshore loans and receivables totalled $157.1m, which if fully recovered would comprise 34c of the 74c in the dollar returned to investors.
"The nature of these receivables is complex and the level of recoverability is subject to a number of issues, including political uncertainties," the receivers said.
It would also be difficult and costly to recover loans Bridgecorp sold to other financiers, to generate cash flow for principal and interest payments to Bridgecorp investors.
As at June 30, Bridgecorp's loan book comprised 69 loans totalling $393m, with many of the better quality loans sold off, PWC said.
Property settlements and property for resale, representing five properties held by Bridgecorp, were unlikely to realise their book value of $38.6m. Similarly, advances made to other Bridgecorp companies outside those in receivership totalling $87.6m were unlikely to be recovered in full.
Borrowings from around 14,500 secured debenture holders totalled $458.7m.
Holders of capital notes in Bridgecorp Investments were not covered by the estimates, and would be written to later this week.
Receivers were appointed to the trans-Tasman property finance company on July 2 after it defaulted on repayments of some term investments due to investors.
Bridgecorp was linked to Fijian-registered company Matapo, which has been building a resort and homes near Nadi. However, the development has been disrupted by December's Fijian coup.
Bridgecorp has said it was owed $49.1m relating to the development.
- NZPA
