$205 million of South Canterbury Finance loans up for grabs
South Canterbury Finance subsidiary Face Finance is up for sale as part of the selldown of the Timaru-based lender's core assets.
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South Canterbury Finance subsidiary Face Finance is up for sale as part of the selldown of the Timaru-based lender’s core assets.
South Canterbury receivers Kerryn Downey and William Black of McGrathNicol have appointed Deutsche Bank as sale adviser.
Face Finance, South Canterbury’s plant and equipment financing subsidiary, had a total loan book of $205.43 million at the time of receivership last August. Of that amount, $8.48 million was impaired, according to the first receivership report.
The company had cash and cash equivalents of just $399,193 as at September 2010.
Face Finance is included in South Canterbury’s “good bank” assets. The company focused on lending to the road transport, aviation, earthmoving and construction sectors.
While Face Finance operated on a largely standalone basis from the rest of the South Canterbury Finance group, it did receive funding from the Allan Hubbard-controlled company.
At the time of receivership South Canterbury had advanced $196.84 million to Face.
Mr Downey and Mr Black said they believed the potential sale would offer the opportunity to transition Face Finance out of receivership.
The receivers have yet to announce the sale process for the consumer and commercial lending businesses of SCF, although they expect this process will commence within two to three months.
Other assets for sale include Helicopters New Zealand and apple exporter Scales Corporation. Goldman Sachs & Partners have called for expressions of interest.
Duncan Bridgeman
Wed, 16 Feb 2011
Wed, 16 Feb 2011
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$205 million of South Canterbury Finance loans up for grabs
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