For creditors it is not good news.

The latest report to investors regarding the estates of defunct local companies, Area Finance Inc. and 439288 B.C. Ltd. indicates that the estimated return to them will only approximate one cent per dollar of claim.

This means that a $300,000 investment will only see a return of approximately $3,000.

More than a year after Pricewaterhouse Coopers Inc. (PWC) was appointed as trustee for the bankruptcy proceedings for the two companies, investors are still waiting for the saga to unfold.

In 2002 company director/secretary Carl Glenn Anderson, director/president Victor Montaldi and Gordon Anthony Shanks, sub mortgage broker were investigated due to information being received by the superintendent from the British Columbia Securities Commission (BCSECCOM).

Then during a 2004 BCSECCOM hearing into the troubled companies both Anderson and Montaldi guaranteed repayment of invested funds and pledged all of their current and after acquired assets as security for those guarantees.

In November 2009, Anderson announced that he would be filing for bankruptcy and appointed John S. Beverly & Associates as his trustee.

Montaldi was petitioned into bankruptcy with Boale Wood and Company, by PWC in May 2010, leaving approximately 480 local creditors wondering if they would see a return on their invested funds which totaled in the tens of millions of dollars.

Both Anderson and Montaldi have now also had their hearings for discharge from bankruptcy adjourned following objections filed by PWC until the affairs of both men are reviewed.

According to the last week鈥檚 PWC report, the most significant asset of the estates were the loan portfolios.

The report says, records kept by Anderson and Montaldi indicated that 649 loans existed at the time of the bankruptcy. These loans had a reported value of more than $15 million and excluded loans taken out by both Anderson and Montaldi themselves.

PWC's report said that Anderson had a loan with the numbered company for $5.4 million. Montaldi also had a loan with the company which totaled $11.8 million at the time of their respective bankruptcies.

PWC says its review of the loan database it was revealed that 59 per cent of the Area Finance loans to individuals, and 77 per cent of the numbered company鈥檚 loans had not received any payment within the year preceding bankruptcy.

PWC says that the loan portfolios have proven difficult to collect. Only 107 of the 455 Area Finance loans have received payment since November 2009 and similarly only 25 of the 194 numbered company loans have received payments during the same time period.

PWC reports that to date just over $771,000 has been collected on the loans leaving a balance of more than $14 million.

PWC cites inadequate record keeping, poor economic conditions in 亚洲天堂 Lake, high costs of litigation in small claims courts and unsecured loans, whereby the ability to collect is more difficult.

The numbered company also held a security interest over Omineca Lama Ranch Inc., located on Colleymount Road.

Boale Wood and Company was appointed the receiver of the ranch to recoup funds from the property, including equipment and livestock however PWC reports that due to the complexity of Anderson and Montaldi鈥檚 affairs, difficulties in obtaining books and records and the listed value of assets not being realized it is unlikely that any proceeds will be recovered from either Anderson or Montaldi and the Omineca Lama Ranch鈥檚 administration.

Boale Wood and Company, as Montaldi鈥檚 bankruptcy trustee, report that he failed to perform the duties imposed on him under the Bankruptcy and Insolvency Act (BIA). According to the trustee Montaldi failed to attend his first and second BIA counselling session.

As well as failing to attend the counselling sessions, a continuing investigation into the transfer of assets from Montaldi鈥檚 estate prior to his bankruptcy has lead to the trustee鈥檚 opposition of a discharge from bankruptcy.

The report of Montaldi鈥檚 trustee Boale Wood and Company, attached as an appendix to the PWC report, says that within three months of Montaldi鈥檚 bankruptcy he transferred, sold or otherwise divested his interest in several significant assets to his former spouse and others. These assets include (but are not limited to) Montaldi鈥檚 interest in a travel agency, his interest in an accounting practice [Marmon Financial Management] that he continues to manage, a real estate holding company and several personal assets.

Boale Wood intends to have Montaldi examined under oath to obtain further details about these transactions.

The report also notes that during the bankruptcy administration Montaldi鈥檚 reported net earnings after expenses have ranged from a high of $1,878 in July 2011 to a low of $1,550 in January 2011. Prior to bankruptcy Montaldi was earning several hundred thousand dollars per year from Marmon Financial Management.

The trustee believes that Marmon should be paying Montaldi a salary comparable to the one he was receiving prior to the bankruptcy.

The matter is currently before the courts and should Montaldi鈥檚 income be determined to be different than reported he may then have a substantial surplus income that will become due to the estate.

Boale Wood also note in their report that Montaldi failed to provide them with the details regarding the sale of assets prior to his bankruptcy.

Boale Wood鈥檚 report states that Montaldi鈥檚 assets are not of a value equal to 50 cents on the dollar on the amount of his unsecured liabilities. Form 82 attached to Boale Wood鈥檚 report shows that Montaldi鈥檚 [realized] assets total just over $39,000 and his proven unsecured liabilities are over $17 million dollars.

Anderson鈥檚 trustees John S. Beverley & Associates also report an opposition to his discharge from bankruptcy.

According to Anderson鈥檚 trustee he continued to trade after becoming aware of his insolvency.

鈥淯nder examination, Anderson admitted to continuing to use his credit cards after he became aware that he was insolvent,鈥� the trustee stated in their report.

The trustee also reports that Anderson鈥檚 assets are not of a value equal to 50 cents on the dollar on the amount of his unsecured liabilities. This means that Anderson鈥檚 assets total $12,838 and his proven unsecured liabilities are over $26 million dollars.

PWC say the next steps are to continue to re-coup funds from the loan portfolio, sell the remaining four properties, finalize the bankruptcy estates of both Anderson and Montaldi and pay a dividend to the creditors.

Anderson, Montaldi and Shanks were contacted for comment. Anderson and Shanks could not be reached as of press time. Montaldi said he was not aware of the latest report and would not be able to make a comment before Lakes District 亚洲天堂 went to press.

For more information on the proceedings go to www.pwc.com/car-burnslake.