SCF receivers seek to sell rest of the 'good bank'

Thursday 14th April 2011

The receivers of South Canterbury Finance are moving to sell the bulk of the collapsed finance company's so-called "good bank" after earlier signalling the sale of wholly-owned investment company Helicopters (NZ) for about $160 million.

Receivers McGrath Nicol were appointed to SCF last August, triggering the Crown guarantee scheme for the Timaru-based financial institution which had around 35,000 depositors and about $1.6 billion in deposits.

The proceeds from assets will reduce the Crown's liability as the Crown facilitated repayment of prior-ranking debts to put itself first in line to be repaid by the company's receivers.

Today Kerryn Downey and William Black, of McGrath Nicol, said the sale of the consumer, business and rural lending divisions, and subsidiary Southbury Insurance were under way with a goal of mid-year for the transaction.

This sale process will be conducted by Deutsche Bank AG, as sale adviser for SCF's core finance business.

These businesses comprise the balance of SCF's "good bank" business. A sale process was commenced for FACE Finance earlier in the year.

Earlier this week the receivers said Canadian Helicopters had been selected as the buyer of Helicopters (NZ). Helicopters (NZ) was founded in 1955 and has grown to a fleet of 37 helicopters with operations in this country, Australia, South East Asia and Antarctica.

NZPA

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