Sharechat Logo

Strategic book value deficit at $195.5m

Monday 30th August 2010

Text too small?

Strategic Finance, placed in receivership in March and liquidation in July, has a book value deficit of $195.5 million, according to the first report from the liquidators.

The deficit is based on the stricken firm’s estimated assets and liabilities as at May 31 and confirms unsecured creditors are likely to get nothing.

Liquidators John Cregten and Andrew McKay said they won’t call a meeting of creditors because they “believe the value of the assets of the company available for distribution to unsecured, non-preferential creditors is likely to be zero.”

On that basis, a creditors’ meeting would impose an “unreasonable” additional expense on funds available to complete the liquidation.

The financial statement shows Strategic had some $11.7 million in cash, assets and accounts receivable that haven’t been specifically charged and are available to preferential creditors. Charged assets include the net property loan book at $234 million, making assets available to secured creditors $246.7 million.

Against that comes money owed to Bank of Scotland of $76 million and secured debenture stock of $291.7 million, leaving a deficit after secured creditors of $121 million.

When money owed to unsecured creditors is included, the book value deficit blows out to $195.5 million.Unsecured creditors are owed $55.7 million in interest payments, $11 million from subordinated notes and $1.46 million for unsecured deposits. Trade creditors are owed $526,000.

Strategic Finance was sent to the receivers in March by trustee Perpetual Trust, ending a moratorium arrangement that had been in place since December 2008. The finance company missed its milestone repayment on January 7 after it failed to generate enough loan recoveries.

Businesswire.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report
Wellington International Airport Ltd (“WIA040”) - Maturity
Devon Funds Morning Note - 18 July 2024
CNU - Commerce Commission releases draft Price Quality decision
Precinct FY24 Annual Results and Webcast Details
Scott Technology appoints new CEO