Bondholders in the failed St Laurence Property Development Fund are facing a shortfall after the company was put into liquidation last month.

Liquidators Barry Jordan and David Vance of Deloitte estimate the company faces a shortfall of $23 million before liquidation, though they have not established a range of potential recoveries for the 1335 bondholders owed some $25 million, according to their first report.

Bondholders had $18 million of their debt converted into equity after the company missed its June repayment, leaving just $7 million at the top of the creditors' queue.

"The liquidators have taken control of the cash funds and we expect to make an interim distribution to secured investors in respect of interest due once we are satisfied that all investor information is accurately held," the report said.

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Trustee Perpetual Trust applied to the High Court to appoint a liquidator in June after the fund's directors said investors would not be repaid on time and put forward three alternatives to bondholders which were not acceptable to the trustee.

The fund raised $20 million in 2006 to finance projects in Brisbane and Mt Maunganui.

The exposure to the Brisbane development was shared with related party Irongate Property, which is also in receivership, and the liquidators said they might recover up to A$1 million ($1.25 million) from its share in the loan.

They also expect to recover $137,000 from the Albany City development.

The $6.3 million second-ranking mortgage on the Mt Maunganui development is unclear, with a $62 million loan to Singapore's Quilington due next month. Quilington took on the debt from BOS International earlier this year, and has been funding outgoings on the property.

- BusinessDesk