About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
deposit rates

South Canterbury reaping '$1 million a week' from distressed assets

South Canterbury Finance said it is reaping about $1 million a week from collections and sales of distressed assets while investors are rolling over about $100 million a month.

Thursday, 22 April 2010

by BusinessDesk

The Timaru-based firm, which gained a lifeline this month with acceptance into the extended government retail deposit guarantee, is road-showing its new prospectus, with chief executive Sandy Maier touring the country as part of the promotion. South Canterbury has about $460 million of debentures coming due by the end of June and has hinted it may have to sell assets to meet any shortfall in maturities.

"I'm not woefully stressed out about it but I'm working hard through the roadshows," Maier said in Wellington today. "We're much closer to being out of the woods now (but) we still have some work to do."

He said the firm believes it can "handle" the cash demand of maturing debentures and is confident of a strong level of renewals even though feedback during the roadshows is that "the magic of South Canterbury is tarnished."

He estimates it will take up to three years to sell off all of the bad assets. South Canterbury is aiming to collect about 50 cents in the dollar on distressed assets. By the end of this month, the firm will have liquidated about $200 million of the loan book.

South Canterbury joined Marac Finance, Equity Mortgages, and PGG Wrightson Finance in gaining entry to the extended guarantee, which covers investors' deposits until the end of 2011.

The firm this month outlined its plans to restructure its business, creating three divisions - a ‘bad' bank to hold distressed assets, the continuing finance unit and a "private equity-type" unit that holds newly acquired assets such as Helicopters NZ and Scales.

South Canterbury posted an audited first-half net loss of $198.6 million this month, worse than the unaudited $154.9 million loss it announced on March 1.



Commenting is closed


Printable version


Email to a friend
Newsletter Signup

Weekly Updates including news and commentary

Today's Best Bank Rates
Rabobank 1.95
Based on a $50,000 deposit    More Rates »
Today's Top 5 Deposit Rates
Rabobank 1.95 Rabobank PremiumSaver - max rate
Heartland Bank 1.90 Heartland Direct Call
Heartland Bank 1.90 Heartland Business Call
Co-operative Bank 1.70 Step Saver - potential rate
Rabobank 1.55 RaboSaver on call Account
Based on a $50,000 deposit    More Rates »
Find a Rate
Show me the rates for
invested over
Use the full calculator
Cash PIE Rates
Institution Rate 30% 33%
ANZ 0.50 - -
ASB Bank 0.30 0.31 0.32
ASB Bank 0.30 0.31 0.32
ASB Bank 0.30 0.31 0.32
ASB Bank 0.30 0.31 0.32
ASB Bank 0.30 0.31 0.32
BNZ 0.10 0.10 0.10
Heartland Bank 0.40 0.40 0.40
Kiwibank 0.05 - -
Kiwibank 0.20 - -
Nelson Building Society - - -
SBS Bank - - -
TSB Bank 0.25 0.25 0.26
Westpac 1.20 1.20 1.20
Westpac 0.15 0.15 0.15
Westpac 1.35 1.35 1.35

More »

Previous News
Latest Trends
Coming Soon

Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.

© Copyright 1997-2022. Tarawera Publishing Ltd. All Rights Reserved.