Failed finance companies net PwC more than $10mill

Failed finance companies have netted PricewaterhouseCoopers more than $10 million since the sector collapse started in 2006.

Friday, February 12th 2010, 5:13AM 1 Comment

by Paul McBeth

The accounting firm has made about $11 million in receivers' fees and disbursements as it works to wind up seven failed finance companies, according to documents lodged with the Companies Office.

With some of the receiverships likely to drag on, PwC is well-placed to continue to reap the rewards of untangling the companies’ affairs.

The lion’s share of this comes from the $3.27 million charged for Provincial Finance, which marked the start of the sector’s collapse.

This will likely be superseded by Bridgecorp, which was at $2.87 million at the September update last year.

PwC has made $1.36 million from Five-Star Finance, whose directors are facing criminal charges laid by the Companies Office, and about $1.2 million from Nathans Finance and VTL.

It made $1.1 million from National Finance 2000, which sold its loan book to Allan Hawkins’ Cynotech Holdings.

A spokeswoman for PwC said the firm does not comment on its fees.

Paul is a staff writer for Good Returns based in Wellington.

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Comments from our readers

On 17 February 2010 at 12:12 pm Nelson Procter said:

If these figures are accurate, the coy spokeswoman doesn't need to comment. The rip-off is self evident. Is there anything to stop PwC charging what it likes?

Failed finance companies net PwC more than $10mill

Failed finance companies have netted PricewaterhouseCoopers more than $10 million since the sector collapse started in 2006.

Friday, February 12th 2010, 5:13AM 1 Comment

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