Is SCF govt guaranteed?
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Is SCF govt guaranteed?
Possibly .. well until Oct 2010? So the Govt wont want it 'falling over' however there must now be doubts about disclosure when the Govt accepted SCF into the gaurantee scheme late last year as it would appear from the a/c's to 30th June 09 that impairments have been significant for most of the financial year. This may give the Govt 'wriggle room' however I would expect the Govt to perhaps at least underwrite a discounted sharemarket listing or similar to try and make the problem go away?
It all comes down to how badly the loan book is impaired , and when a reasonable person would have considered provisioning appropriate , imo.
M
There does seem to be a certain amount of arrogance in this fellow Lachie
McLeod dismissed concerns over these arrangements as "great bloody gossip from The Viaduct".
and
"Some of our related-party lending is the best lending we know," he said.
and
And everything we do, we talk very closely with our auditors [Timaru-based accounting firm Woodnorth Myers], our trustee [Trustees Executors] and of course now we've got a new partner called Treasury [monitoring the Deposit Guarantee Scheme]."
from
http://www.nzx.com/news/markets/4940697
What does the Government guarantee actually guurantee ..... everything owing to creditors or just certain things
Depositors funds only ... that does not incl offshore depositors or pref shares...imo
http://www.treasury.govt.nz/economy/guarantee This link may be useful.
I wonder if there are any additional exposure problems now that PGW have issued a profit downgrade...
Here you go ..... PGW , Southbury and SCF merge creating a mega Ag/Finance Group (not dissimilar to Wrightson before they sold their Finance division to Rabo) with the Crown as 19.9% shareholder .... with non-performing property loans 'quarantined' in an 'Adbro' style Co owned by the Crown and Hubbard?
M