Receivers expect 'complete loss' on Momi resort debt

JOHN SELKIRK

FINANCIAL FLOP: Political developments in Fiji "continue to impact upon the ability to progress any recovery efforts" from the Momi resort project near Nadi.

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Receivers of failed finance company Bridgecorp are expecting a "complete loss" on the company's loan exposure of more than $100 million on the Momi Resort development in Fiji.

In an update to investors just before Christmas, receivers Colin McCloy and Maurice Noone of PricewaterhouseCoopers said they continued to expect recoveries to secured debenture holders to be less than 10 cents in the dollar.

But delays and issues relating to the realisation of overseas assets continued to prevent a reliable estimate of the timing or size of likely returns to investors.

The receivers noted an auction process for the Momi Resort by the prior mortgagee last August was unsuccessful, and had been followed by media reports that the first mortgagee had bought the property.

"We continue to investigate potential actions available to Bridgecorp, however, the potential outcome remains uncertain and it is likely that a complete loss will be suffered on this loan exposure," the receivers said. "Political developments in Fiji continue to impact upon the ability to progress any recovery efforts."

- NZPA