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South Canterbury Finance placed into receivership

August 30, 2010

LATEST: South Canterbury Finance has asked for the company to be placed in receivership.

It appears New Zealand’s second largest finance company was unable to find a buyer for the whole company.

Its chief executive Sandy Maier has said several times the goal was to sell the company as a whole with its good and bad loans.

Financial market commentators have said in the last few days there were parties interested in the good loans which are estimated to be about $700 million of its $1.75 billion of loans.

SCF announced this morning that it has been unable to complete a recapitalisation and restructure.

As a result, the Company would have been unable to certify to its trustee, Trustees Executors, in accordance with the terms of its debenture trust deed that it was compliant with various financial covenants under the debenture trust deed for the financial year ended 30 June 2010.

The trustee acts on behalf of more than 35,000 debenture holders with $1.2 billion of debentures invested in the big lender.

Accordingly, South Canterbury Finance Limited has requested Trustees Executors to appoint a
receiver in respect of the whole of its undertaking and assets, and Trustees Executors Limited has done
so.

SCF was burning the midnight oil last night to thrash out a life-saving deal to avoid its collapse.

Click here to read more of the article by MARTA STEEMAN – BusinessDay.co.nz

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