Now, Allan Border linked to McDermott property business collapse

Sydney : Former Australian captain Allan Border has been linked to the collapsed property investor group, Bridgecorp, via his former team-mate Craig McDermott and Bridgecorp founder, Rod Petricevic.

Border, is a director and shareholder in Fraser Quays, the company developing Fraser Waters, a residential estate on Hervey Bay, reportedly using Bridgecorp loans.

News.co,.au quoted Border as saying that he had no knowledge of a loan from Bridgecorp, and said he thought he had resigned as a director of the company, but no record has been sent to the Australian Securities and Investments Commission.

McDermott's company Maxen Developments is the manager of the project. McDermott is also a director of Fraser Waters, the development company for the project.

Already former Test bowler Carl Rackemann and rugby league and rugby union international Michael O'Connor have purchased blocks of land.

In related news, it has been revealed that the 18 million dollars owed by McDermott to the failed property development funding house Bridgecorp was due to be repaid two years ago, but was extended after the funding house chose not to convert the loan to equity in McDermott's business.

According to Bridgecorp documents, 6.75 million dollars of the funds were lent to McDermott's property development company in September 2002, in the form of convertible notes which matured in 2005. When the loan matured, Bridgecorp chose to get cash back rather than converting the notes into shares in Maxen Developments.

Bridgecorp was placed into administration earlier this month and now a receiver is attempting to retrieve the funds to repay more than 1000 mostly elderly investors who are owed about 24 million dollars.

McDermott was paying 11 per cent interest each year for the use of the money in a coastal subdivision which he was selling as house and land packages.

McDermott and his companies are working on nine projects, mostly along the Queensland coast north of Brisbane. (ANI)