v2 Report - Additional Information Supplement
BHL Bridgecorp Holdings Limited
Press releases
Bridgecorp
Holdings Limited Suspends Trading
Bridgecorp Holdings Limited (BHL) has today requested that its shares be
temporarily suspended from quotation on Unlisted.
Due to a potential default that occurred last week Bridgecorp Limited, a
subsidiary of BHL, is in talks with its trustee at present and BHL
considers a temporary trading suspension pending resolution of its
subsidiary’s issue with the trustee is appropriate.
Announcement posted by Unlisted
For Bridgecorp Holdings Limited
Register
of Companies - Removal of Bridgecorp No.2 Limited
28 February 2007.
Bridgecorp is currently undertaking a scheduled group restructuring
programme to simplify the Bridgecorp group of companies.
As part of this programme, we intend to remove a number of companies over
the next few months to create a more transparent structure.
We are now in the process of removing "Bridgecorp No.2 Limited”
from the Register of Companies.
Bridgecorp No. 2 Limited was incorporated on 23 March 2004. It is a wholly
owned subsidiary of Bridgecorp Holdings Limited, the Australian registered
parent company of the Bridgecorp group of companies.
Bridgecorp No. 2 Limited has not been utilised in the manner it was
intended, has never traded, has no assets or liabilities and, for this
reason, proceedings have been initiated to remove the company from the
Register of Companies.
As part of the removal process for this company, our intention to remove
this company from the Register of Companies will be advertised in due
course in ’The New Zealand Herald’, and ’New Zealand Gazette’ - by
way of a public notice.
Please be aware that this is taking place.
This company’s name is very similar to ’Bridgecorp Limited’.
However, please note; this company is not "Bridgecorp Limited"
but "Bridgecorp No.2 Limited.
Importantly, Bridgecorp No. 2 Limited does not form part of the "Bridgecorp
Limited charging group", which provides security for the benefit of
debenture holders.
The winding up of Bridgecorp No. 2 Limited is part of an organised group
restructuring programme, which will significantly simplify the structure
of the Bridgecorp group of companies.
If you have any queries, please do not hesitate to contact us.
Bridgecorp Limited
PO Box 3805, Auckland
09-307-6789 or 0800 468 373
visit www.bridgecorp.co.nz
Westpoint
/ Bayshore Update
Advisor Information Release
Dated: 22 February 2007
For mmediate release
Westpoint / Bayshore Update
As you may be aware, Bridgecorp Finance Limited (BFLA), the Australian
operating arm of the Bridgecorp group of companies, has attracted a lot of
interest in, and commentary about, its loan to Bayshore Port Melbourne Pty
Limited (a subsidiary of the Westpoint Group).
Update
Further to our commentary in the December newsletter, we are pleased to be
able to update you on progress and share with you some good news.
After a successful marketing campaign, the sale in-one-line of the
majority of the remaining apartment stock at Bayshore has been achieved at
prices equivalent to valuation.
Settlement took place on 19 February 2007 and it is expected that the
receiver’s (Korda Mentha) role will be completed by 31 March 2007.
As at today’s date there is approximately $A3 million of sold but
unsettled stock and a further $A3.5 million of unsold stock, of which the
proceeds will be shared 50/50 by Hanover (through HFL Australia Pty
Limited) and BFLA. BFLA expects to recover these amounts.
Group Managing Director, Rod Petricevic, said “the successful completion
and sell down of most of the remaining stock is good news. This loan has
undoubtedly put pressure on the Bridgecorp group and the media reporting
of it has meant we have had to spend a significant amount of time to
ensure our investors’ confidence remained strong. We had every
confidence that this loan would be managed, to what is in, no doubt, a
positive outcome for the business. It is an example of Bridgecorp calling
on its industry experience and strength to arrive at a successful
outcome”.
Timeline by way of background
•August 2004: Various financiers (including BFLA) made loans to Bayshore
Port Melbourne Pty Limited to fund a residential apartment development in
Port Melbourne, Australia. The original loan date was August 2004. BFLA
and its co-lender (Hanover) originally advanced A$25 million (including
interest and fees) between them on a pari passu second mortgage, while MFS
funded the balance taking first mortgage security.
•May 2005: A project meeting was held where it was highlighted that the
project completion date of November 2005 could not be achieved if the work
in progress was not significantly escalated. From this time on, BFLA and
its co-lender monitored progress of the project.
•December 2005: BFLA and its co-lender acted under their joint security
to take control of the project. BFLA and its co-lender appointed Korda
Mentha as receiver and manager (R&M) of Bayshore Port Melbourne Pty
Limited on 22 December 2005, and subsequently BFLA and its co-lender
agreed to jointly fund the R&M to bring the project to completion.
•January 2006: The Westpoint Group was under considerable pressure with
administrators and liquidators having been appointed to various entities
within the group and ASIC sought winding-up orders over a number of the
Westpoint Group’s mezzanine debt funds.
•February 2006: ASIC suspended BFLA’s Australian prospectus. The
suspension related primarily to disclosure of certain information relating
to the loan to Bayshore Port Melbourne Pty Limited and construction and
ordering of information within the prospectus. This resulted in BFLA being
unable to raise funds, or reinvest maturing investments, in the Australian
market.
At this time Bridgecorp Limited (the New Zealand operating arm of the
Bridgecorp group of companies) was in the process of acquiring certain
performing loans from BFLA. These loans then formed part of Bridgecorp
Limited’s loan book (These are fully disclosed in the current Bridgecorp
Limited prospectus).
•April 2006: BFLA had been working closely with ASIC to work through the
issues raised over the loan to Bayshore Port Melbourne Pty Limited.
•May 2006: BFLA obtained an independent report of its Australian
business from Deloitte Touche Tohmatsu (independent chartered
accountants). The outcome of the report confirmed the solvency and
viability of the Australian business and that none of the ratios or
covenants in BFLA’s trust deed had been breached.
•July 2006: The Bayshore project was 90% completed.
•August 2006: To formalise arrangements already in place, a Consent
Order was obtained in the Supreme Court of New South Wales in consultation
with BFLA and its Trustee (Permanent Nominees Ltd) by ASIC, formalising
reporting obligations of the parties.
•November 2006: A Certificate of Occupancy and completion of the
Bayshore project was achieved.
•December 2006: The first mortgagee’s (MFS) mortgage was fully repaid
from settlement of sales of Bayshore units by the R&M.
•December 2006: Money began being repaid to BFLA and Hanover by the
R&M from sales of the Bayshore units.
•February 2007: BFLA’s mortgage (net of the provision) was
substantially reduced to A$3.0 million with full repayment of this amount
expected by 31 March 2007 as a result of further settlement of sold stock
and the sale of the unsold stock.
This Bayshore project is the first of the collapsed Westpoint Group’s
projects that has been managed to a successful completion and sell-down.
BFLA will receive substantially all of the principal it originally
advanced. BFLA has already provided for the balance of the total amount
advanced (including interest and fees).
Please visit our website to view photos of the project at various stages
of completion.
www.bridgecorp.co.nz > Property Finance Download Centre > Bayshore
Project Photos – Australia
OR
www.bridgecorp.co.nz >About Us > News > Bayshore Project Photos
– Australia
We thank you for your continued support during recent months. If you
require any further information regarding the Bridgecorp group, please
feel free to contact us on 0800 468 373 or visit our website.
•All figures quoted relating to the loan are in Australian dollars
•BFLA (Bridgecorp Finance Limited) is the Australian operating arm of
the Bridgecorp group of companies.
Bridgecorp Limited
Level 11, No 1. Queen Street, Auckland Central
PH: 307-6789 www.bridgecorp.co.nz
Information Release
Dated: 23 February 2007.
Bridgecorp Limited confirms ‘Investment Grade’
Property finance company, Bridgecorp Limited (the New Zealand operating arm of the Bridgecorp group of companies), today officially released its re-rating from international rating agency Property Investment Research Pty Limited (PIR).
Bridgecorp Limited was awarded an investment grade security rating of 3.5 stars. Security ratings range between 0 and 5.0 stars with a rating of 2.5 stars or above considered investment grade. The rating is valid until 21 November 2007.
Bridgecorp Limited remains one of only a handful of New Zealand finance companies to hold a current investment grade rating from an international rating agency.
Bridgecorp has been an active participant in internationally recognised and credible rating programmes since 2004, when it released a rating from Rapid Ratings. Bridgecorp was rated three times by Rapid Ratings, until that organisation decided to exit the market at the end of 2006. At that time, Bridgecorp held a PIR security rating and supported the initiative from internationally recognised rating agency Standard & Poor’s to introduce a rating system to the NZ finance company market. Bridgecorp was disappointed to learn of the withdrawal of the Standard & Poor’s initiative due to the overall lack of support from the major finance companies. Because of these movements Bridgecorp has decided to remain committed to the PIR rating programme.
Bridgecorp considers ratings to be a differentiator and measure that distinguishes the organisation from many other New Zealand finance companies.
Group Managing Director, Rod Petricevic, says “given the recent challenging market conditions faced by all players in the finance industry, it is extremely rewarding to achieve recognition of our business from an independent rating agency. The retention of ‘investment grade’ sends a strong and confident message to the market that Bridgecorp has the determination and expertise to survive through, and face the challenges of, the current market”.
For more information regarding PIR and its rating systems visit www.pir.com.au
For more information regarding Bridgecorp or to obtain an investment statement, please phone 0800 468373 or visit www.bridgecorp.co.nz
Bridgecorp
Level 11
1 Queen Street
Auckland Central
Footnote
The terms upon which the rating has been given are contained within the PIR Independent Research Rating Report dated 22 February 2007 (“PIR Rating Report”).
A rating may vary with investor profile and is only a point in time assessment. A rating does not take into consideration personal circumstances, objectives or needs and should not be relied on in isolation. A full copy of the PIR Rating Report is available from Bridgecorp and must be considered for important assumptions, warnings and risks. For further general information on PIR’s rating systems, refer to www.pir.com.au.
The PIR Rating Report is based on, amongst other things, PIR’s assessment of the offer contained within the relevant offer documents. In addition, the PIR Rating Report involved a review and assessment of information within and outside the public domain, including interviews with various personnel of Bridgecorp, at all times in accordance with the terms of reference contained within a Letter of Appointment of PIR dated 15 November 2006 upon which the PIR Rating Report and rating was provided. The PIR Rating Report is a point in time assessment utilising that information.
The PIR Rating Report is not intended for reliance upon by any investor and has been provided to Bridgecorp at all times subject also to the disclaimers and limitations of liability contained within its front and final pages.
Chairman's report
Director's Report
