Receivership fees for Bridgecorp top $10m
Updated at 2:21 pm on 19 September 2012
Costs associated with the receivership of the failed finance company Bridgecorp have topped $10 million.
The finance company collapsed in 2007, owing nearly $490 million to 14,500 investors.
The receivers, PricewaterhouseCoopers, are required to file six-monthly updates on the receivership.
The latest report says receivers' fees for the past five years have reached $4.166 million, legal costs are $4.92 million, while other professional services total $1.42 million.
Since July 2007, PricewaterhouseCoopers has recovered $66 million and repaid $16 million to secured debenture holders.
However, it has reminded investors their return is likely to be less than 10 cents in the dollar and is not hopeful of getting much more, saying further returns are largely dependent upon insurance and legal action.
Three Bridgecorp directors were jailed after being prosecuted by the Financial Markets Authority and two others sentenced to home detention.
PricewaterhouseCoopers says it is continuing to investigate further legal action against some of the directors.
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