Bridgecorp's receivers tried to stop the action by the Fijian military regime when it seized the failed Momi Bay resort against its wishes, and they are now investigating what to do.
A Pricewaterhouse Coopers spokesman in Auckland said the action left the receivers consulting lawyers. PWC is deciding what it can do to recover money from Fiji for the 14,360 Bridgecorp investors.
Colin McCloy and John Fisk at PWC were in charge of the resort but now the military government has stepped in to stem huge superannuation losses.
It was reported in the Fiji Times yesterday that the Momi Bay Development Decree which approved the move by the Fiji National Provident Fund to get full control and continue the development became effective last Friday.
The fund has a $60.7 million exposure to Momi, the abandoned tropical resort where the vast 140ha first stage involved 22km of roading.
A PWC spokesperson said legal advice was being sought. The fund has more than 300,000 members but its Momi stake has been a disastrous investment.
"The state found it was essential and imperative that the fund acquired proper ownership of the stagnant tourism project so it could realise the securities that the fund held in Momi," the newspaper said.
Bridgecorp collapsed in July, 2007 owing $459 million, and it was developing the resort when it failed. Its largest loan was to Momi and last year McCloy said he was working with the developer and financiers to try to secure funding to complete it. Bridgecorp had a $49.1 million exposure to Momi where work stopped after the military coup in 2006.
KG06
