Australian company Ross Investments is offering to buy Bridgecorp debentures from investors, before the failed finance company's receivers have even reached a preliminary view on what they might be worth.
In a brief advertisement in Saturday's BusinessHerald, headed "Bridgecorp Limited in Receivership", Ross Investments gave an 0800 number,"Should you wish to sell your debenture (sic)".
Ross Investments' name does not appear in the advertisement, and there is no further information including price.
Several calls to the number yesterday and to the Bendigo-based company's New Zealand business administrator Jody Lamb were not returned.
Bridgecorp's receivers PricewaterhouseCoopers have yet to form a view on the likely amount of payouts to Bridgecorp investors.
"We are aware that a number of parties are considering such offers to investors," said PricewaterhouseCoopers' Colin McCloy.
"But until we see the full details of the offer then we are not in a position to make any informed comment."
Ross Investments and director Robert Douglas Ross were fined a total $24,000 last year by the Commerce Commission for misleading claims made when trying to buy capital bonds and units from New Zealand investors.
Between August 2004 and March 2005 the company wrote to thousands of capital bond and unit holders of Vector and Kiwi Income Property Trust (KIPT). The letters implied that Vector and KIPT were in financial difficulties and that, to dispose of bonds and units that would otherwise be difficult to sell, investors should sell them to Ross Investments.
Aside from the fact that both businesses were in good shape the price offered was significantly below market value. Approximately 20 investors took up Ross's offer.
Vector and KIPT spent about $42,000 to correct Ross's misleading claims, and on legal advice.
Commission director of fair trading Deborah Battell said Ross Investments had been warned twice before over similar misleading representations.
A BRIDGE TOO FAR
* Australian firm Ross Investments is offering to buy Bridgecorp debentures.
* It is not known how much the firm is offering.
* Bridgecorp's receivers have yet to give investors any idea of what the securities might now be worth.
* Ross Investments has run foul of New Zealand regulators in the past for unsolicited low-ball offers to buy securities from investors.
