McDermott owes money to collapsed firm

The former Australian fast bowler, Craig McDermott, is believed to owe Aus$18 million to investors in the failed property company Bridgecorp, which collapsed on July 3 leaving up to 1000 investors out of pocket.

McDermott, who took 291 wickets in 71 Tests for Australia, allegedly borrowed the funds for his own development company, Maxen Developers, in order to buy land on the Queensland coast. Though Bridgecorp's receivers, Ferrier Hodgson, did not mention McDermott by name, they have suggested that the repayment of the loan is "critical" if the company's investors hope to recoup their losses.

"The major debtor who owes $18 million did repay $4.5million in June [but] has had debts that have been long outstanding," the administrator, Brian Silvia, told The Daily Telegraph. "If he is identified as being under stress, the project may not be completed."

According to The Australian newspaper, McDermott, 42, is losing up to Aus$15,000 a day in interest payments alone. Queensland Supreme Court documents reveal that Maxen Developers - and other groups directly controlled by McDermott - owed Bridgecorp $13.6 million back in March, but a massive annual interest rate of 30% has since accelerated the debt.

It has not been a good year for McDermott, who was recently blackmailed for more than $40,000 to stop a sex video of him and his wife, Ann-Maree - who is listed as a co-owner of Maxen - being posted on the Internet.