Bridgecorp investors to receive first meagre payout next month
Receiver Colin McCloy says in a letter to debenture holders the key issue of what was owed the Inland Revenue Department has been resolved with no additional claims made and IRD's existing claim of $3.9 million reduced to $3.6 million and paid in full.
In his last report in March, McCloy had warned a further IRD claim might be forthcoming and he couldn't distribute anything to investors until IRD's claims were settled.
McCloy confirmes his earlier estimate that debenture holders are likely to recoup less than 10 cents in the dollar although "we continue to vigorously pursue all possible avenues of recovery."
He expects Bridgecorp will suffer a complete loss on its loans over properties in Fiji. In respect of about $50 million of lending on Australian hotels, "discussions with the liquidators of the Australian borrowers have progressed and we are now hopeful of receiving a distribution from the liquidations prior to the end of 2011 although a substantial shortfall is expected."
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