Frequently Asked Questions

1. I am a debenture holder who has recently received a letter from the Receivers (dated 14 September 2007) requesting my bank account details for any future distributions. What do I need to provide?

You need to provide either:

(a) a signed pre-printed deposit slip for your New Zealand bank account with your Bridgecorp investor number hand written on it; or
(b) a signed copy of your bank account statement showing the relevant account name and account number with your Bridgecorp investor number hand written on it.

Unfortunately, we are unable to accept hand written bank account details due to the risk of false details being provided by other parties.

Please note that if your investment is held jointly, all joint investors must sign the pre-printed deposit slip or the bank account statement.

2. I am unsure if I have submitted the correct information regarding my bank account details. What should I do?

The Investor Services Team at Bridgecorp is responsible for processing the bank account details received from all debenture holders.

If the Investor Services Team concludes that you have provided insufficient details to enable them to process your bank account details, a letter will be sent to you requesting further information.

Generally, if an investor has submitted details of a bank account number and:

(a) that investor has not signed the pre-printed deposit slip or the bank account statement (whichever is applicable); AND
(b) that bank account number is different to the bank account number previously advised to Bridgecorp by that investor,

THEN that investor will receive a further letter from the Receivers requesting further information.

Please ensure that you sign your pre-printed deposit slip or copy of your bank statement before sending in your bank details.

3. I am a holder of New Zealand dollar denominated debenture stock (i.e. NZD term investments), but I do not operate a New Zealand bank account. How will my distributions be paid?

If you have an investment in New Zealand dollar denominated debenture stock (i.e. NZD term investments) but you do not operate a New Zealand bank account, we can direct any future New Zealand dollar distributions to your overseas bank account or pay such distributions to you via a New Zealand dollar cheque.

If you would like your New Zealand dollar distributions paid to you via a New Zealand dollar cheque or deposited into your overseas bank account, then please submit your signed request to us in writing outlining how you would like to be paid to:

PricewaterhouseCoopers
Private Bag 92162
Auckland
Attn: Bridgecorp Limited (In Receivership)

Depending on the option you select, you may be required to complete and return a form. If you are required to complete a form to action your request, we will write to you and enclose a copy of the relevant form and a pre-paid self-addressed envelope for your convenience.

4. I am a holder of Australian dollar denominated debenture stock (i.e. AUD term investments), but I do not operate an Australian bank account. How will my distributions be paid?

If you have an investment in Australian dollar denominated debenture stock (i.e. AUD term investments) but you do not operate an Australian bank account, we can direct any future Australian dollar distributions to your bank account in another jurisdiction or pay such distributions to you via an Australian dollar cheque.

If you would like your Australian dollar distributions paid to you via an Australian dollar cheque or deposited into your bank account in another jurisdiction, then please submit your signed request to us in writing outlining how you would like to be paid to:

PricewaterhouseCoopers
Private Bag 92162
Auckland
Attn: Bridgecorp Limited (In Receivership)

Depending on the option you select, you may be required to complete and return a form. If you are required to complete a form to action your request, we will write to you and enclose a copy of the relevant form and a pre-paid self-addressed envelope for your convenience

5. The original debenture holder for this investment is now deceased. What relevant estate documentation do I need to provide to receive distributions for this investment?

You will need to provide us with the following documents:

(a) a certified copy of probate or letters of administration for the relevant estate; and
(b) a pre-printed deposit slip for the executor's bank account, which has been signed by the executor of the estate and has the Bridgecorp investor number of the deceased hand written on it; or
(c) a copy of the executor's bank account statement showing the relevant account name and account number, which has been signed by the executor of the estate and has the Bridgecorp investor number of the deceased hand written on it.

Please send these documents to us at:

PricewaterhouseCoopers
Private Bag 92162
Auckland
Attn: Bridgecorp Limited (In Receivership)

For further information, please contact the Bridgecorp Investor Services Team on 0800 468 373.

6. I am a holder of debenture, but I do not operate a bank account in my own name. Can distributions be credited to a bank account in the name of another party?

If you have a debenture investment under a single investor name but you have a joint bank account with another person(s), we can direct distributions into this joint bank account provided you provide us with:

(a) a signed pre-printed deposit slip for your joint bank account with your Bridgecorp investor number hand written on it; or
(b) a signed copy of your joint bank account statement showing the relevant account name and account number with your Bridgecorp investor number hand written on it.

If you would prefer us to credit distributions to a third party (i.e. your financial advisor's trust account or your solicitors' trust account), then you must provide us with:

(a) a pre-printed deposit slip for the third party's bank account with your Bridgecorp investor number hand written on it and your signature on it; or
(b) a copy of the third party's bank account statement showing the relevant account name and account number with your Bridgecorp investor number hand written on it and your signature on it.

Please note that if you would like us to credit distributions to a third party's bank account, then we may require further information from you for verification purposes.

Please also note that we are unable to accept hand written bank account details due to the risk of false details being provided by other parties.

7. Can the ownership of investments be transferred?

Bridgecorp can now process transfers of investments. If you would like to transfer an investment, please submit your request in writing to us at:

PricewaterhouseCoopers
Private Bag 92162
Auckland
Attn: Bridgecorp Limited (In Receivership)

You will be sent a transfer form to complete and return with the original investment certificate.

Please note that the Receivers reserve the right to refuse any transfer request.

8. When will I receive returns on my debenture investment?

Unfortunately we cannot estimate the timing or frequency of any distributions to secured investors at this time due to the complex nature of the Companies' assets and the current state of the marketplace. We will write to all secured investors as soon as an estimated date for distribution is known.

9. When will we receive an update on the Bridgecorp receivership?

An update on the Bridgecorp receivership is due to be posted to all debenture investors in December 2007.

10. What is the current status of Bridgecorp Investments Limited (In Liquidation)?

The Liquidators of Bridgecorp Investments Limited (In Liquidation) are still investigating alternative avenues for funds for capital note holders. Unfortunately, there are unlikely to be recoveries to capital note holders from the liquidation. The Liquidators will contact Capital Note holders if the situation improves sufficiently for a return to be made to Capital Note holders.

11. I have heard that there is an investor group called Exposing Unacceptable Finance Advice ("EUFA"). Who are they and how do I contact them?

Exposing Unacceptable Financial Advice ("EUFA") is a third party organisation established outside of the receivership. This organisation was recently launched by Suzanne Edmonds. If you would like to contact this organisation, their website address is www.eufa.co.nz.

12. I want to know how much commission was paid to my financial advisor. Can you or Bridgecorp tell me this information?

Unfortunately, we are unable to disclose any information relating to commission payments made to financial advisors to investors for confidentiality reasons. We suggest that you contact your financial advisor directly to request this information.

13. The investment holder cannot sign the relevant receivership documents for their Bridgecorp debenture investment. Can I sign on their behalf?

If you are signing on behalf of an investor, please note that we will require that investor to formally appoint you as their agent under a Power of Attorney.

On receipt of such document notifying us that you act on their behalf, we can arrange for all correspondence to be sent to you to complete on behalf of the investor.

14. Can my investment be used to purchase part ownership of some of the Bridgecorp loans/properties?

Bridgecorp investors are unable to purchase any of the Bridgecorp loans or properties using their investment monies as part payment.

Previous FAQs

15. What has happened to Bridgecorp Limited?

John Waller and Colin McCloy, partners of PricewaterhouseCoopers, were appointed receivers of Bridgecorp Limited ("Bridgecorp") on 2 July 2007. The following subsidiaries of Bridgecorp were also put into receivership on that date.

BFSL 2007 Limited
BNL 2007 Limited
B2B Brokers Limited
Monice Properties Limited
Bridgecorp Capital Limited

Following the above receiverships, Bridgecorp's Australian parent company, Bridgecorp Holdings Limited ("BHL"), and a number of other related Australian entities, were placed into Voluntary Administration, with Stephen Longley and Philip Carter of PricewaterhouseCoopers appointed as Administrators. In addition, Brian Silvia and Andrew Love of Ferrier Hodgson were appointed Receivers and Managers of an Australian subsidiary of BHL, Bridgecorp Finance Limited.

Subsequently, the following entities have been placed in liquidation with John Waller and Colin McCloy as liquidators:

Poseidon Limited - owner of the motor yacht "Medici"
Bridgecorp Investments Limited - issuer of Capital Notes
Goodman Limited - a fully owned subsidiary of BHL

16. Why were receivers appointed to Bridgecorp?

Following a breach of its Trust Deed, the Directors of Bridgecorp completed an analysis of the financial standing of Bridgecorp. As a result, the Directors concluded that it was in the best interests of Debenture holders that a receiver be appointed to Bridgecorp. Covenant Trustee Company Limited therefore appointed receivers on 2 July 2007.

17. I am a debenture holder in Bridgecorp, what happens to my investment?

As part of the receivership, principal repayments from scheduled maturities will not be made until further notice.

18. What about interest on my investments?

Similar to principal repayments, no interest payments to debenture holders will be made until further notice.

19. What will the receivers do now?

We have secured the assets of Bridgecorp and are currently determining its financial position. Given the size of Bridgecorp and the number and complexity of loans, this will take some time. The Receivers reported to debenture holders on their initial findings of Bridgecorp's financial position on 31 July 2007 (a copy is available on our website).

20. When will I receive returns on my debenture investment?

The timing of any payout is difficult to assess at this stage as it will depend on a number of factors including the method by which the value in the Loan Book and other assets is realised. It is highly likely that any recoveries to investors will be paid out over time as loans are recovered, as opposed to a lump sum payout. As a result it would be prudent for investors to assume that they will not obtain any recoveries in the next six months. Once we have a better indication of potential timeframes for recoveries we will advise investors.

21. How much money does Bridgecorp owe to debenture holders?

We continue to work with Bridgecorp management to finalise the outstanding amount owed to the approximately 14,500 debenture holders with 19,000 investments. As part of this process, we have written to all investors seeking confirmation of their investments. At this stage, it is estimated that Bridgecorp owes approximately $459m to secured debenture holders.

22. My contact details have changed. Who do I notify of my change of address?

If your postal details have changed, please advise your updated address details to Bridgecorp in writing and your account details will be updated accordingly.

23. Can I receive updates on the receivership via email?

Investors will receive a hard copy of any formal updates on the Bridgecorp receivership via post. A soft copy version of these updates and any other information released can also be found on our website at: www.pwc.com/nz/Bridgecorp.

24. I received an interest payment advice for 30 June 2007. Why did I not receive the interest due to me when Bridgecorp was placed into receivership on 2 July 2007?

Bridgecorp was unable to meet its financial commitments to all investors immediately prior to the date of receivership. As a result, the interest due to be paid into your bank account was not processed prior to the appointment of the Receivers on 2 July 2007.

One of the consequences of the receivership is that all scheduled but unpaid repayments (whether due before, on or after the date of receivership) cannot now be made as all the debts of Bridgecorp were frozen on the date of receivership (being 2 July 2007). Instead, debenture holders will be repaid a pro-rata distribution of their investments as asset realisations are made by the Receivers from Bridgecorp's assets.

25. My interest advice I received for 30 June 2007 shows a tax deduction. Why do I have to pay tax on interest I have not received?

The tax liability of Bridgecorp is still being determined. At this stage, the Receivers have used your principal investment plus the net amount of interest due to you but not paid on 30 June 2007 to determine your total investment to ensure all investors rank equally.

Please note that any distribution from the receivership will be firstly a return of principal. The Receivers will notify investors if any returns of interest subject to tax are to be made.

26. My investment was due to be repaid before Bridgecorp was placed into receivership on 2 July 2007. Do I therefore rank ahead of other investors and will receive a full refund of my investment?

Bridgecorp was unable to meet its financial commitments to all investors immediately prior to the Date of Receivership. As a result, your investment was not repaid prior to our appointment.

One of the consequences of the receivership is that all scheduled but unpaid repayments (whether due before, on, or after the date of receivership) rank equally with other debenture holders and will be repaid on a pro-rata basis as asset realisations are made by the Receivers.

27. What effect will the 'Lloyds of London' insurance policy have on my investment?

Bridgecorp is insured under group mortgage indemnity insurance policies underwritten by certain syndicates of 'Lloyd's of London'. The policies cover losses incurred by Bridgecorp in relation to the non-repayment of specific loans, subject to the loans meeting certain criteria, and are limited to a portion of the original principal lent only.

Certain claims are being made by the receivers, which will form part of the assets of Bridgecorp and will be distributed in due course by the Receivers.

28. Can the ownership of investments be transferred?

At this stage of the receivership, only transfers relating to deceased estates are being processed. The Receivers will consider other written requests for transfers on a case-by-case basis.

29. Is Compass Capital Limited part of Bridgecorp?

Compass Capital Limited is not a company within the Bridgecorp group of companies. As Compass Capital Limited is a separate company, its assets do not form part of the receivership assets.

30. Can Bridgecorp tell me what brokerage was paid to my financial advisor?

Standard brokerage rates were disclosed in Bridgecorp's prospectus. Prior to the date of receivership, Bridgecorp reported brokerage on successful investment applications at a rate of 0.50% per annum (payable in one lump sum on settlement), up to a maximum total rate of 1.50%. The standard rates of brokerage applicable to the most common terms offered by Bridgecorp were reported as:

3 months 0.125%
6 months 0.250%
9 months 0.375%
12 months 0.500%
18 months 0.750%
2 years 1.000%
3 years and over 1.500%

However we understand that, from time to time, Bridgecorp paid brokerage at different rates than those specified above and adjusted brokerage on investments repaid early. You should contact your financial advisor for specific details of brokerage paid in connection with your investment.

31. What is happening with the Momi Bay project in Fiji?

Given the complexity of the structure and loans surrounding the Momi Bay project, it will take some time for the Receivers to determine likely recoveries from this project.

The Receivers cannot comment on the progress of the development itself, as Bridgecorp is a financier of the development, and is not the developer.

32. Have the receivers seized the personal assets of the Directors of Bridgecorp?

The personal assets of the Directors do not form part of the assets of Bridgecorp and as such cannot be seized by the Receivers.

33. What action will be taken by the Receivers in respect of the conduct of Bridgecorp and others prior to receivership to recoup lost funds for Bridgecorp investors?

The Receivers' investigations into the affairs of Bridgecorp are complex and ongoing. If, during the course of the investigations, the Receivers identify any matters which they believe may give rise to breaches under the Trust Deed, legislation, common law or otherwise by any party, they will take direct action if applicable and notify the relevant Government authorities of their findings. Those authorities may take such actions as they deem appropriate.

34. I have investments in Bridgecorp Finance Limited in Australia. How do I contact them?

The contact details for the Receivers and Manager of Bridgecorp Finance Limited (Receivers and Managers Appointed) (Administrators Appointed) in Australia are as follows:

Phone: +612 9286 9816
Fax: +612 9286 9888
Email: bridgecorp@fh.com.au
Web Page: http://ferrierhodgson.com.au/caseprofiles/details.cfm?objectID=41

35. I have a Capital Note investment in Bridgecorp Investments Limited (In Liquidation). What is the likelihood of receiving any distributions?

Bridgecorp Investments Limited (In Liquidation) was placed into liquidation on 6 July 2007. One effect of the liquidation is that all scheduled repayments of interest and principal (whether due before or after the date of liquidation and despite maturity instructions having been given by you) cannot now be made as all the debts of Bridgecorp Investments Limited (In Liquidation) were frozen on the date of liquidation.

As noted in the liquidators' letter to investors dated 15 August 2007, the assets of Bridgecorp Investments Limited (In Liquidation) comprise a tax asset reported as $1.24m and various amounts relating to Bridgecorp Limited (In Receivership) ("BL") being:

Intercompany balances totalling $1.9m due from BL,
Dividend of $1.1m due from BL, and
$33m of redeemable preference shares in BL.

A preliminary estimate of recoveries for BL's secured debenture investors was released last week, with estimated returns ranging between 25% and 74% of their original investment in BL. The amounts due to the Bridgecorp Investments Limited (In Liquidation) by BL rank behind amounts due to secured debenture investors. As a result it is unlikely that Capital Note holders will recover anything from BL, and unless there are recoveries from the $1.24m tax asset then there are unlikely to be recoveries to Capital Note holders.
Investigations into potential recovery avenues continue, and the final position will not be known for some time. The liquidators will contact Capital Note holders if the situation improves sufficiently for a return to be made.

36. I have a question re my investment. How do I communicate it to the Receivers?

Please email us via our Bridgecorp specific website www.pwc.com/nz/Bridgecorp or write to us at:

PricewaterhouseCoopers
Re: Bridgecorp Limited (In Receivership)
Private Bag 92162
AUCKLAND