South Canterbury Finance Limited

[winner69]

The Treasury carry on around the Gvt Guarantee not covering trusts managed by professional trustees or trusts/estates where any beneficiary is overseas could have a few ramifications here

I would hazard a guess that a lot of the so called rich SI money is in these sprt of vehicles

Maybe a quick payout under the scheme won't happen for many

[minimoke]

I would hazard a guess that a lot of the so called rich SI money is in these sprt of vehicles

Maybe a quick payout under the scheme won't happen for many

Presumably Forsyth Barr managed funds will have some SCF exposure - unless the clever money exited a while back. The Govt already had $887m provisioning and realistically most of this has to be tagged for SCF. I can't see why it would want to take on the Bad Bank and loose the benefit of the assets in the Good Bank. I'm still swinging it will be a receivership.

As an aside, will the potential new owners (and their depositors) still have coverage under the Deposit Guarantee?

Coming back to the Deposit Guarantee. If there is a default event and the Govt pays out - where do they stand in hte line to get money back. Are tehy infornt of or behind Torchlight?

[Alan3285]

Presumably Forsyth Barr managed funds will have some SCF exposure - unless the clever money exited a while back. The Govt already had $887m provisioning and realistically most of this has to be tagged for SCF. I can't see why it would want to take on the Bad Bank and loose the benefit of the assets in the Good Bank. I'm still swinging it will be a receivership.

As an aside, will the potential new owners (and their depositors) still have coverage under the Deposit Guarantee?

Coming back to the Deposit Guarantee. If there is a default event and the Govt pays out - where do they stand in hte line to get money back. Are tehy infornt of or behind Torchlight?

I can't be certain - I guess you'd have to read the GGS stuff on the Treasury website - but I believe Treasury effectively just step into whatever position the people they pay out had before.

I would imagine therefore, behind Torchlight, ahead of bond holders, unsecured creditors, pref shareholders, and ord shareholders.


Don't rely on my memory though (I don't!)

Alan.

[winner69]

Good old Mick Hoskings guts eh .... after listening to Carruthers he is now convinced this is an injustice or something ... and tells us so ad nausem

whats overlooked is taht hubbards empire was unravelling a couple of years ago but the govt guarantee kept the money go round turning for a few more years ... and it still irks me that a company that essentially self destructed is bailed out by the taxpayer

Alan may have had a great business for decades but at the end of the day he will be remembered for other things

[Lizard]

Any thoughts on how secure funding for Marac and UDC will be without debenture holders post GG?

Seems to me that there have been a lot of funds found their way into Marac/UDC which will be reluctant to go back there post guarantee on any terms. SCF failing now probably final nail in coffin for any confidence from debenture holders. I haven't looked closely enough at these to know whether they are likely to have sufficient funding without debenture deposits.

Also expect a gathering wave of money coming out of these and looking for a new home - maybe in bank TD's but where else? Listed and unlisted bank bonds - though already yields are getting quite low on these and investors needing to pay above face value on many.

[Lizard]

Update out.

Market announcement by South Canterbury Finance Limited

30 August 2010

Market Update by South Canterbury Finance Limited

South Canterbury Finance announced today that it is still in discussions with interested parties in an endeavour to put together a recapitalisation and restructuring solution acceptable to all stakeholders. In view of recent media speculation, the Company also announced that there can be no certainty that the proposals it has been pursuing will be successfully implemented. The Company expects to be in a position to make an announcement to the market on Tuesday 31 August.

[winner69]

GENERAL

Market announcement by South Canterbury Finance Limited

30 August 2010

Market Update by South Canterbury Finance Limited

South Canterbury Finance announced today that it is still in discussions with interested parties in an endeavour to put together a recapitalisation and restructuring solution acceptable to all stakeholders. In view of recent media speculation, the Company also announced that there can be no certainty that the proposals it has been pursuing will be successfully implemented. The Company expects to be in a position to make an announcement to the market on Tuesday 31 August.

Ends


First time Sandy hasn't been totally positive

[minimoke]

. In view of recent media speculation, the Company also announced that there can be no certainty that the proposals it has been pursuing will be successfully implemented.

First time Sandy hasn't been totally positive

What a load of bull****. Posters here have for months been saying there was no certainty that new equity would be introduced. These were comments made not to undermine SCF - they were opinions held without the benefit of rose tinted glasses. Sandy has known all along that "there can be no certainty that the proposals it has been pursuing will be successfully implemented." - he has failed, until today, to tell the market so!

[fungus pudding]

What a load of bull****. Posters here have for months been saying there was no certainty that new equity would be introduced. These were comments made not to undermine SCF - they were opinions held without the benefit of rose tinted glasses. Sandy has known all along that "there can be no certainty that the proposals it has been pursuing will be successfully implemented." - he has failed, until today, to tell the market so!

Yeah - but it would be remiss of the company not to blame someone, or anyone, or even everyone else, when the opportunity arises. It's the Kiwi way.

[Lizard]

Sandy has known all along that "there can be no certainty that the proposals it has been pursuing will be successfully implemented." - he has failed, until today, to tell the market so!

It's called maintaining your negotiating position - i.e. keep potential buyers believing they need to act or someone else is going to walk off with the deal... admitting there might not be a deal reads as capitulation.