20:20:04 EDT Thu 02 May 2024
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Globe says OSC told Bridging work makes lawyers happy

2024-01-16 08:54 ET - In the News

The Globe and Mail reports in its Tuesday edition that the accountants and lawyers winding down Bridging Finance were paid $43-million for their first two years of work, money that has been used to fund everything from forensic analysis, to portfolio management, to litigation. The Globe's Tim Kiladze writes that because the work continues, the final tally for professional fees will likely grow. Bridging's investors, meanwhile, remain in the dark on what will come of the money they put into the private lender. According to the last estimate, they are expected to lose 60 per cent of their funds, or $1.3-billion, collectively. Bridging was founded in 2013 and grew rapidly, raising $2.09-billion from 26,000 investors. It used this money to lend to companies that could not obtain bank financing, and Bridging charged elevated interest rates. In May, 2021, the Ontario Securities Commission asked a judge to put Bridging under the control of a receiver, alleging the firm improperly used investor funds to benefit some of its founders and executives. Partners for the receiver, PricewaterhouseCoopers LLP, typically charged between $800 and $1,150 an hour, while the top lawyer fees often ranged from $1,110 to $1,300 an hour.

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