Strategic Finance in receivership

Friday 12th March 2010

Strategic Finance is this evening in the hands of receivers PricewaterhouseCoopers, ending moratorium arrangements that have been in place since December 2008.

The troubled finance company missed a milestone debt repayment on Jan. 7 after failing to generate sufficient loan recoveries, and its fate had been in the balance ever since.

Also in January, it announced the total value of its loan book had fallen below 75% of the aggregate principal monies owed to debenture holders, depositors and subordinated note holders, net of provisioning.

Some $417 million of deposits, belonging to 13,000 investors, have been under moratorium since December 2008. "We will be talking to key stakeholders over the next few days to determine the best way forward," said PwC's John Fisk.

"We understand the uncertainty the recent situation has caused to investors and believe the receivership will now provide greater certainty.

"It is too early to release any further details, but we are working as quickly as we can to determine the best option to ensure maximised funds are distributed to investors."

“The receivership also brings certainty to unsecured creditors’ claims that were not subject to the moratorium, and provides options to review cost structures that were not available to management under the moratorium."

A report to creditors will reported as quickly as possible.

Businesswire.co.nz

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