SCF debenture holders payment delayed

Wednesday 29th September 2010

South Canterbury Finance debenture and deposit holders will have to wait until the middle of next month until their money is returned.

Trustees Executors regional manager Yogesh Mody said it's working through the audit and transfer process and expects to finish that in the next few days. Once that's complete, it will probably take a further two weeks to repay investors. Debenture and deposit holders will receive their principal investment, plus their original interest rate up to August 30, then 3% from August 31 to the date of payment.

"We understand that the process is taking longer than some may have thought, however the processes of auditing and confirming investor details on the register are essential to ensure investors are paid the correct amount," Mody said.

"We fully appreciate the SCF security holders want their investment returned to them as quickly as possible."

SCF was sent to the receiver at the end of last month after it failed to find a new investor, triggering a call on the retail deposit guarantee. The government stumped up a $1.775 billion cheque to cover the firm's debts and take on the role of sole creditor.

Last week, the trustee paid out some $350 million to SCF's listed bondholders.

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