Hurricane was owned by Dunedin businessman Paul Nicholson, who placed it in voluntary liquidation in early March owing almost $8.5 million to 50 southern investors, with initial estimates that up to $4.8 million might be unrecoverable.
At the time of its liquidation, Hurricane's liquidators were making a claim against Fendal Finance Ltd in Christchurch for repayment of a $4.5 million loan, which, unusually, was not secured against any assets, and represented more than 50% of Hurricane's loan book.
However, the outlook for Hurricane investors has taken a further knock.
Fendal has since been placed in voluntary liquidation by owner Gray Ussher with estimates of a $10.5 million shortfall, further undermining the likely amount recoverable for Hurricane's $4.5 million loan.
In the latest twist to trying to recover Hurricane loans, liquidator Gus Jenkins of Insolvency Management Ltd has been chasing part of an Australian loan to ASX listed-Greater Bendigo Gold Mines Ltd.
Bendigo has a subsidiary company in administration and is in voluntary suspension on the ASX as it seeks new capital of up to $A5 million ($NZ6.4 million).
Its shares last traded at A3.7c before the November suspension.
The original loan from Hurricane was understood, but not confirmed, to have been between $400,000 and possibly $1 million, most of which had been repaid.
In a March report to shareholders, Greater Bendigo said it had spent the previous quarter focusing on recapitalising the company, noting one inter-national investor had pulled out, while still seeking $A3.5 million to $A5 million.
Mr Jenkins said while the Bendigo debt was repaid, some of it had since been "assigned" to a New Zealand finance company, but its director was understood to have left the country.
Mr Jenkins said a statutory demand for payment of the outstanding debt had been filed and while there had been no response, he held a personal guarantee from the director.
He confirmed an Auckland property of Hurricane's was recently sold by tender for "several hundred thousand dollars".
The Christchurch liquidator of Fendal Finance, Murray Allott, said in his first report on Fendal, which was a second-tier financier of both residential and commercial borrowers, that its failure was due to a "high proportion of write-downs" for its portfolio size.
"Distressed loans" were also affecting its ability to pay its debts as they fell due.
He said it was too early to advise of any outcome from the liquidation process to determine "what funds, if any, can be recovered in respect of each loan".
