Update for Holders of Bridgecorp Capital Notes

Update for Holders of Bridgecorp Capital Notes

The receivers for Bridgecorp Limited (“Bridgecorp”) and several of its New Zealand-based subsidiaries, PricewaterhouseCoopers’ partners Colin McCloy and John Waller, have released an update on the position of related company Bridgecorp Investments Limited (“BIL”), which was placed into liquidation on 6 July.

BIL’s reported assets comprise a $1.24m tax asset and various amounts linked to related company Bridgecorp, represented by inter-company advances totalling $1.9m; a dividend due of $1.1m; and $33m of redeemable preference shares held in Bridgecorp.

The amounts linked to Bridgecorp rank behind amounts due to Bridgecorp’s secured debenture investors. A preliminary estimate of recoveries for these secured debenture investors was released last week, with estimated returns ranging from 25% through to 74% of the original amounts invested.

Liquidator Colin McCloy said that because of the ranking of the amounts and the preliminary estimate of recoveries for Bridgecorp, the liquidators’ view was that it was unlikely Capital Note Holders would recover anything of the $29m owing to them by BIL.

“Unfortunately, unless there are recoveries from the $1.24m tax asset, it is unlikely there will be any recoveries for the Capital Note Holders of BIL. We appreciate that this is not good news for the holders of the capital notes and we regret not being able to deliver more positive news.

“Our investigations into potential recovery avenues continue, and the final position will not be known for some time. We will contact BIL Capital Note Holders if the situation improves sufficiently for any return to be made.”

ENDS

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