South Canterbury Finance Limited

[Beagle]

Lets get real. It was $500 million in the so called bad bank as at 31 December 2009. Since then its been steadily downhill, just look at how the realisable value of the Hanover loan book has been written down, many more loans from the so called good bank would now be impaired or have gone bad, there's around $300m of related party transactions that any new investor won't want to know about, so it could easily be $1b that's in the too hard basket, which the Govt will be expected to pick up at par value in any potential bailout. Just what they might relaise out of this allmighty mess is anyone's guess but it wouldn't surprise me in the slightest if they got a $600-800m hiding.

The Govt are between a rock and a hard place as even if they buy this incredibly huge bunch of "so called" assets at par value, there's no assurance they won't be called on again before December 2011 if the new owner gets into trouble trying to climb the December 2011 wall of maturities.

The answer to me is to simply initiate Receivership or Statutory management of SCF and allow Sandy time to work the situation to mitigate the loss as much as possible. SCF as a brand are finished, its time to stop the pretence.

[Contrarian]

Gidday

Equity from Chinese, a backdoor for their entry to NZ farming. Probably exempt OIO approval.

Bill English, from the far south, has cancelled his overseas trip tonight, No Singapore etc

[winner69]

This is going to take forever .... and forever

SFO widens Hubbard inquiry

Duncan Bridgeman | Monday August 30, 2010 - 03:53pm
The Serious Fraud Office has widened its investigation into Allan Hubbard’s Aorangi Securities to include Hubbard Management Funds, a company uncovered by statutory managers last month.

http://www.nbr.co.nz/article/sfo-wid...enquiry-129145

[Toddy]

The way things are heading this is going to make a hell of a movie.

A good title may be 'I use to sleep in a dirty old sack, and still do' or 'Speights, handshakes and the deal that was never done'.

[winner69]

The way things are heading this is going to make a hell of a movie.

A good title may be 'I use to sleep in a dirty old sack, and still do' or 'Speights, handshakes and the deal that was never done'.

Richard Long could play the lead role .... just to amke the story interesting

And then they could collect more debenture money as punters filed out of the theatre

[Toddy]

Gidday

Equity from Chinese, a backdoor for their entry to NZ farming. Probably exempt OIO approval.

Bill English, from the far south, has cancelled his overseas trip tonight, No Singapore etc

Maybe the Govt should let this whole thing fall over. Then offer assistance by offering farming loans to those farmers who's loans are due to roll in the short term (via Kiwibank) i.e allow them access to finance. That way there will be no fire sale of 'farms'.

[winner69]

Wonder if our mate will be on the TV news again tonight?

[minimoke]

The answer to me is to simply initiate Receivership or Statutory management of SCF and allow Sandy time to work the situation to mitigate the loss as much as possible. SCF as a brand are finished, its time to stop the pretence.

I suspect there will be a "no expense spared" final meal at Robbies Timaru tonight on the company credit card. Then the plug will be pulled. Its really not that hard a decision. Its just about making sure as many ducks are in a row before the inevitable axe falls. Sandy has done all he can now - there ain't anything left to be done. The receivers will be brought in to extract maximum value as there is no potential in resurrecting the corpse that once was a vibrant finance company

[minimoke]

Then offer assistance by offering farming loans to those farmers who's loans are due to roll in the short term (via Kiwibank) i.e allow them access to finance. That way there will be no fire sale of 'farms'.

Why the govt?. What about Fonterra coming to the party since these farmers apparently contribute 1% to their production.

[winner69]

That Hubbard Managed Fund has done well .... PWC apaprently say that its 10 year performance puts it in the top 10 funds in the country (I think that whats i heard) ... quite impressive really

Even better than GPGs 18% pa over 20 years methinks