KEY POINTS:
Bridgecorp receiver PricewaterhouseCoopers has begun bankruptcy proceedings against Bridgecorp founder Rod Petricevic.
It did so after receiving no advice that Mr Petricevic paid nearly $600,000 to stave off bankruptcy proceedings by a deadline of 5pm yesterday.
"We are initiating bankruptcy proceedings against him," Colin McCloy of PricewaterhouseCoopers said. "We have commenced it this morning."
Last week, Justice John Priestley awarded Petricevic a stay of execution, stopping receivers of the failed finance company from beginning bankruptcy proceedings.
The stay was conditional on Petricevic - who claims he is insolvent - depositing the $576,100 receivers claimed he owed them for a tax bill in a High Court trust account.
The receivers gained a summary judgment last month ordering Mr Petricevic to repay the money plus interest, totalling $661,333. Mr Petricevic planned to appeal against the order.
Justice Priestley said last week that while the former Bridgecorp head claimed he was unable to satisfy his creditors, he had earned $4 million in the three years to 2007, and had received total advances of $4.9 million from his family trust.
Bridgecorp collapsed owing almost $460 million to 14,500 debenture holders. Latest estimates from the receivers are that investors may get as little as 13c in the dollar back.
Petricevic and fellow Bridgecorp director Robert Roest have been charged under the Companies and Securities Acts. The charges relate to claims by the directors and in the company's prospectus that it had never missed an interest or principal payment.
They are due to appear in court in Auckland on July 29.
- NZPA
