Receivers hope to get a further 5c for Lombard Finance investors

John Fisk of PricewaterhouseCoopers said recovery action for certain loans could boost the interim distribution to 5 cents in the dollar, on the company's website. That comes after he downgraded the estimated recovery to between 15% and 24% in a February letter to investors, from the previous range of 17% to 29%.

The latest receiver's report, lodged with the Companies Office, said Fisk was focusing on two significant loan exposures, both of which have been put into receivership.

At $42.6 million, the Brooklyn development loan is Lombard Finance's biggest exposure, and Fisk said he is considering other options to realise the value of the assets after an unsuccessful tender process.

"Given that the Brooklyn Development loan makes up 31% of LF&I's loan book, the level of loan recovery will have a significant impact upon the overall level of return to secured debenture holders," Fisk said in his report. "For reasons of commercial sensitivity, we do not propose to disclose the estimated recovery from this exposure at this stage."