Bridgeport for sale as Zurich cashes in chips
Bridgeport Advisers and Asset Managers has been placed in voluntary administration after its major creditor and shareholder Zurich Financial Services invoked a contractual clause earlier this week that allows the group be sold.
It is understood Zurich, which took a 30 per cent stake in Bridgeport when it was formed by the merger of three separate businesses in July 1999 and has since increased its stake to hold 55 per cent of the group, is disappointed with its return on capital despite a relative upturn for the advice and investment group this year.
Liquidation firm Jirsch Sutherland was appointed by Zurich on October 19 and has 28 days to put a package together to take Bridgeport to the market.
Sydney-based Jirsch Sutherland liquidator Sule Arnautovic said the 28 day period could be extended but the administrator was aiming to have a package that it can take to the market before then and hopefully allow Bridgeport to be sold off as a single business.
“Zurich enforced their creditor rights not their shareholder rights… as they have a fix and floating charge over the assets of the company and they’ve exercised that charge. Basically [Bridgeport] owed money to the lending company [Zurich],” Arnautovic said.
“It would be preferable to sell the entire group further down the track…. [and] once we get the sell package together we will basically advertise and look to go through a tender process,” he added.
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