An Auckland insolvency expert charged with recovering almost $14 million for the collapsed Bridgecorp has stepped away from an associate company, saying he had a potential clash of interests.
Anthony McCullagh has resigned as a director of financier Compass Capital.
McCullagh, managing director of accountant and consultant Horwath
Corporate (Auckland), said he had left Compass because he was the receiver of two companies which owed Bridgecorp substantial amounts.
He could not continue at Compass - whose beneficiary is Bridgecorp - while trying to recover the money, McCullagh said from Fiji yesterday.
McCullagh and Stephen Lawrence have been appointed receivers of Robert Brown Developments which went under in December, after building the Te Pania Hotel in Napier in 2002. They are also receivers and liquidators of Wellington builder Advantage Construction and Consultancy which went under in March.
The receivers' first report on Robert Brown says $10 million is owed to Bridgecorp and a further $11.5 million to Hanover Finance which had a first-ranking mortgage. Bridgecorp had a second-ranking mortgage.
The initial report on Advantage said it had built seven townhouses but had breached security agreements held by Bridgecorp, which exercised its rights and brought in the receivers.
"The only secured creditor is Bridgecorp which is owed $3,675,166.85 plus interest," McCullagh wrote in a report.
Christchurch developer Robert Brown said the Napier deal struck problems because of its operator.
"He stated that the hotel was built within budget and on time but losses had purely been as a result of Scenic Circle's failure to meet the forecasted cash flows," the receivers said.
Bridgecorp collapsed last Monday owing 18,000 investors about $500 million.
Who owes what
* Bridgecorp owes investors about $500 million.
* The financier is itself owed large amounts.
* Bridgecorp loaned to troubled real estate developments.
* $10 million is due from a Wellington townhouse project.
* Another $3.6 million is due from a Napier hotel deal.
