Thursday 23rd September 2010 1 Comment |
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Bargain hunters who bet against South Canterbury Finance's had their pay-day today, with the failed financier's trustee paying out about $350 million to the listed bond holders.
Trustees Executors told bondholders they will receive their repayment today after the government wrote a $1.78 billion cheque to cover off investors in SCF under the retail deposit guarantee. The payment is made up of the principal and interest up to August 30, as well as extra interest of 3% from August 31, when the receivers were called in, until today.
"When the company was placed into receivership, we said that we would work towards full repayment to holders of SCF bond, debenture and depositors in about four to six weeks," said regional manager Yogesh Mody.
"We expect to make an announcement on repayment for both debenture and deposit holders next week."
Prices for the SCF's listed bond maturing in 2012, after the extended guarantee, fell to a deep discount earlier this year, with yields as high as 40% in March. The yield calmed down in the weeks before the receivership, and last traded at 24% before trading in the security was suspended.
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