South Canterbury Finance Limited

[fungus pudding]

A rather sweeping statement!

What is the evidence? Kiwibank's lending is predominantly mortgage loans to home owners, according to their publicity.

Exactly. Much done on levels of equity that by now will have disappeared, and their client base is probably at the low earner end.

[Newman]

Has anyone got solid evidence that bonds (SCF010, SCF020) are covered by governmental gurantee? How could $600m be enough to cover depositors (and bond holders?)?

[Onthemoney]

Talked to someone in the know today and they told me that Alan helped out a friend who had a couple of farms. The friend thought Alan was great as he helped him out with finance only problem was that when things got a bit tough Alan ended up with the farms. Not too sure what to make of this story though.... This was back in the 70s and 80s.

[winner69]

Has anyone got solid evidence that bonds (SCF010, SCF020) are covered by governmental gurantee? How could $600m be enough to cover depositors (and bond holders?)?

You'll be OK mate .... unless they are in a name of trust and one of your kids who lives in England is a beneficiary

The $600m is the estimated shortfall after paying out under the guarantee less what they can recover from all the outstanding loans .... but god knows what the real figure is

[winner69]

Wonder what this story from the NBR website is all about - subscriber stuff

hardly surprising - next they will be saying that some loans have been forgiven or something

South Canterbury offloading assets ahead of D-day

[Newman]

Wonder what this story from the NBR website is all about - subscriber stuff

hardly surprising - next they will be saying that some loans have been forgiven or something

South Canterbury offloading assets ahead of D-day

South Canterbury offloading assets ahead of D-day
Chris Hutching | Monday August 30, 2010 - 04:25pm
South Canterbury Finance is understood to be preparing to force the sale of $50 million worth of North Island farms.

The sales come in the context of speculative reports about whether the government is prepared to partially fund a bailout to keep the financier going or wait and see if receivership is inevitable. South Canterbury has about $1.5 billion worth of investments covered by the government retail deposit scheme.

Whether the sale of the North Island farms indicates that a government purchase of its bad debts is unlikely or whether it is just a strategy to raise cash as quickly as possible remains to be seen.

South Canterbury was due to make an announcement about recapitalisation by tomorrow after requesting a trading halt of its securities last Friday.

Meanwhile, marketing material was being prepared by real estate agencies ahead of an anticipated announcement about the sale of 12 farms in Manawatu this week.

They are understood to be owned by Tawera Land Company, associated with colourful entrepreneur Ken Thurston.

Three other Thurston’s companies were placed in receivership earlier this month including Fernfresh Growers and Exporters to the World, Property Food and Technology and Aotea Coolstores.

The first report from receiver Gordon Hanson of Goldsmith Fox in Christchurch says South Canterbury appointed him under a general security agreement of November 2009 as security for money paid to a group of companies owned by Mr Thurston pursuant to a gross guarantee deed.

The cross guarantees involve Aotearoa Resorts, Aotearoa Coolstores, Tawera Land Company, Kenneth William Thurston, Property Food and Technology, Water Enviro Services, Sheddan Investments, Newbridge Group, Stay cool, Taste Fresh, Advanced Logistics, (in receivership), and Fernfresh Growers and Exporters to the World (in receivership).

The amount secured by South Canterbury Finance’s cross guarantees is $13,992,087 and debts to other creditors take the total debt of Fernfresh to $20,049,194 matched by net assets of $19.9 million, according to the report.

But South Canterbury has second-ranking security over Tawera with the first ranking creditor being ANZ. A source close to the action said this may indicate South Canterbury is pushing for the sale as a strategy to protect its position as first ranking mortgage holder over other properties in the Thurston group.

Mr Hanson said the Fernfresh properties he is dealing with include a coolstore at Tawera, two houses and bare land at Fielding. Fonterra is eyeing up the coolstore.
Meanwhile, the Tawera farms understood to be due to be launched into a subdued rural market this week are mostly sheep and beef farms.

ANZ and South Canterbury have been working together to bring about a staged selldown. But property management company Total Property Services was in the process of appointing Bayleys as agents today.

[Onthemoney]

Wonder what this story from the NBR website is all about - subscriber stuff

hardly surprising - next they will be saying that some loans have been forgiven or something

South Canterbury offloading assets ahead of D-day

Hoping to pick up a cheap helicopter company myself....

[Jaa]

Wonder if all this emotional talk about SCF going broke will destroy the SI economy is really relevant

How much has SCF lent over the past year? I would guess not much so they haven't been doing much to support farmers and businesses any way

Last two stories about SCF loan recipients I saw were a Manawatu pea farming operation and a flashy Wellington property developer and now this about a colourful entrepreneur from Wairarapa! Hardly life threatening stuff to the mainland economy

I think Toddy might be right about SCF & Hubbard loan recipients lobbying to protect their sweet heart and/or no interest loans.

[Jaa]

Hoping to pick up a cheap helicopter company myself....

Was in Nelson last week and noticed that HNZ had taken over Origin Pacific's old hanger and terminal. Combined with another large recently branded HNZ hanger at the airport they have certainly upped their visibility of late.

[Onthemoney]

Don't want to stick the knife in but when a new business venture I was involved in 4 years ago needed money the trading banks were not eager in lending a few million one in fact said to try South Canterbury - no worries. They saw lending the money as a sale - their risk profile was too open. It was almost like that is 10 million we have lent over the other banks.