ANZ subsidiary OnePath has had its bluff called over proposals to rake in payouts totaling $46.5 million from the sale of management contracts of property trusts.

South Canterbury Finance investors, including all bondholders but not preference shareholders, have been told to spend their cash wisely when they are reimbursed by the government a total of $1.6 billion following the company’s receivership today.

In addition, the government is negotiating a loan of up to $175 million to the receivers for repayment of prior charges over South Canterbury’s assets, including a $100 million facility arranged through investor George Kerr’s Torchlight fund.

South Canterbury Finance chief executive Sandy Maier has taken the brunt of vitriol in public comments following the announcement of New Zealand’s biggest company failure this morning along with founder and major shareholder Allan Hubbard.

Comments posted on NBR’s website today point the finger squarely at Mr Maier’s handling of South Canterbury’s woes, which this morning resulted in the company’s inability to find fresh funds leading to receivers being called in.