Bridgecorp receivers expect loan loss

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 10c 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."

Receivers were appointed to Rod Petricevic's Bridgecorp in July 2007, following a breach of Bridgecorp's trust deed. About 14,400 secured debenture holders are owed $459 million.

- NZPA