Peregrine Fixed Income (PFI) - the department at the centre of the collapse of Peregrine Investments Holdings - accumulated debts of US$2.41 billion, barely 20 per cent of which was likely to be repaid to creditors, liquidators said.
PFI, run by former Peregrine star banker Andre Lee, was responsible for the $265 million loan to Indonesian taxi firm Steady Safe, which caused the group's demise.
Liquidator Price Waterhouse yesterday valued PFI's bond and derivative portfolio at about $2.07 billion, but said it had doubts about being able to recover more than three-quarters of the book.
Price Waterhouse partner Colin Bird said PFI contributed almost 40 per cent of the group's profit, according to its 1996 accounts.
'This group would still be here if this one had not gone down,' he said.
The liquidator said it could take several years before parts of the portfolio were sold off, particularly the Indonesian exposure.