Bridgecorp concerns prompt ASIC orders

The Australian Securities and Investments Commission (ASIC) has made a number of orders against Bridgecorp Finance in relation to significant concerns regarding the company’s financial position.

The non-bank lender, which raises money from investors by offering unsecured notes and then on-lends the money as a short-term property financier, is now restricted from raising further funds from existing debenture holders or accepting rollovers from existing funds.

It must also have its loan book reviewed, provide the trustee with weekly and monthly financial reports and notify its debenture holders of the court orders.

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ASIC applied to the NSW Supreme Court for the orders with the aim of protecting holders’ interests after reviewing two of the company’s prospectuses.

The regulator has acknowledged the co-operation of the trustee, Permanent Nominees Australia, and Bridgecorp Finance in working towards a resolution.

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