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December 19, 2007 |
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BRIDGECORP: Secured Debentures to Get 19% to 63% of Investment John Waller and Colin McCloy of PricewaterhouseCoopers, receivers of Bridgecorp Ltd, lowered their estimates on the recoverability of the company's secured debenture investors to the 19%-63% range. As reported by the Troubled Company Reporter-Asia Pacific on Aug. 1, 2007, the receivers originally estimated that the secured debentures could recover 25% to 74% of their original investment from the company's assets. PwC, in a letter to investors, said that the lower estimated recoverability is due to deteriorating market conditions and subsequent events. “[S]ignificant complexity still remains in respect of recoveries from the Momi development in Fiji,” the receivers added. PwC's Provisional Estimate of Recoveries (In 000s) Book Value Low High ---------- --------- ---------- New Zealand loans NZ$254,199 Australian loans 32,868 Specific Australian & other offshore loans 50,478 ---------- Toal loan (excluding Momi) NZ$337,545 NZ$95,090 NZ$182,883 Property Assets 38,607 1,900 5,000 Intergroup Advances 87,546 500 4,000 Other 24,947 4,000 4,000 ---------- --------- ---------- Total Assets 488,645 101,490 195,883 Preferential Creditors (5,300) (5,300) Contingency (10,000) (10,000) ---------- --------- ---------- Estimated Recoveries (excluding Momi) 86,190 180,583 Secured Borrowings 458,738 458,738 --------- ---------- Estimated Dividend Range 19% 39% Advances re: Momi Resort 106,639 - 106,639 ---------- ---------- ---------- Est. Total Recoveries (prior to costs) 595,284 86,190 287,222 Secured Borrowings NZ$458,738 NZ$458,738 ---------- ---------- Provisional Est. Dividend Range (prior to costs) 19% 63% "While we continue to explore all avenues to improve recoveries, we consider it prudent to advise secured debenture investors of the deteriorating position," the receivers said. According to the receivers, the timing of distributions is still not certain due to the nature of the company's assets. The receivers, however, regret to inform unsecured creditors that "there are unlikely to be any amounts available for payment" to them. A copy of PwC's letter to investors dated Dec. 17, 2007, is available for free at http://ResearchArchives.com/t/s?2673 New Zealand-based Bridgecorp was placed in receivership on July 2, 2007, after failing to pay principal due to debenture holders. John Waller and Colin McCloy, partners at PricewaterhouseCoopers, were appointed as receivers. The company owes around 1,800 debenture holders, which liquidators estimate hold approximately NZ$500 million. |
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