It warned that the ultimate investor losses could prove larger. The amount of the proposed deduction is preliminary, and will be finalized in 2022 before the funds have to make their tax filings, the report said. “The receiver anticipates that the doubtful debt deduction will result in an income tax loss for the applicable Bridging funds and should be allocated to the respective unitholders,” it said. “Based on the analysis undertaken, the receiver proposes that certain Bridging funds claim a doubtful debt deduction … for their 2021 taxation year,” the report said.
The report indicated that the BFI funds could claim a “doubtful debt deduction” of $580 million - representing loans that are unlikely to be repaid, or are considered impaired - on a loan book valued at more than $1.6 billion as of Oct. PwC cited the “complexity” of the bids for BFI assets as well as the time required to “independently assess and negotiate such bids” with counsel that has been appointed to represent investors in the case.Īt the same time, PwC’s latest report provides an estimate of the scale of possible investor losses in the case. In its latest report to the court, PwC said it will seek an extension on the deadline for its sale process from Dec. Thursday’s hearing examined preliminary questions raised by Sharpe’s application, including whether the OSC can publicly disclose compelled testimony without first seeking permission and, if not, whether revoking the investigation order represents a remedy to that.Īt the hearing, counsel for PwC warned the commission panel against rulings that could disrupt its efforts to maximize recovery for investors as part of its process to sell BFI assets.
Among other relief, Sharpe is seeking to have the investigation order that underpinned the OSC’s application to the court quashed.
The hearing addressed an application from former BFI CEO David Sharpe arguing that OSC staff improperly disclosed the contents of his compelled testimony in its application to appoint a receiver over the company.
0 kommentar(er)
