Bridgecorp receivers waive appeal

Photo / Martin Sykes

Bridgecorp's receivers will not appeal a decision that has ordered it to provide $30,000 in security before its subsidiary Navigator Finance takes the Petricevic family trust to court this month.

Navigator is taking the R.M. Petricevic Family Trust to court over a $2.2 million advance it believes it is owed.

Former Bridgecorp director Rod Petricevic is not a beneficiary of the trust but his wife Mary, his children and his grandchildren are.

Navigator was set up as an investment vehicle to fund a film, The Navigator, and is now in liquidation. Because of this Bridgecorp's receivers are funding the litigation on behalf of investors.

Last week, Navigator was ordered by the High Court to provide $30,000 for security for costs before the trial begins. A stay has been placed on the proceedings until the money is provided.

The trust's lawyers applied for security to ensure if they win the case there will be money available for costs.

Navigator's lawyer Murray Tingey said a judgment on security for costs could be appealed in law but wouldn't for this case because there wasn't enough time before the proceedings went to trial on February 28.

Petricevic, who was bankrupted in 2008, and his wife were the sole directors of Navigator. The subsidiary advanced $2.2 million to the trust and now Bridgecorp's receivers want it back to repay secured debenture holders.

However, Petricevic denies the advance was a loan, or that there was a loan agreement between Navigator and the trust.

Last year, Navigator successfully applied to have a caveat placed on Petricevic's family home that is owned by the trust. The caveat prevents the sale of Petricevic's $4.4 million Remuera home on Remuera Rd.

The trust has said the caveat has prevented it from raising funds needed to defend the proceedings.

In its seventh receiver's report - for the six-month period from January 2 to July 1 2010 - PricewaterhouseCoopers states that it is actively pursuing a number of potential actions against "certain Bridgecorp directors" and that it is working with Government authorities.

The report also stated it was working with the Official Assignee to determine whether further claims can be brought against Petricevic and fellow former director Robert Roest.