Mutual Finance payout under way
The Treasury will begin paying out investors in failed Mutual Finance under the Crown guarantee two months after the company was placed in receivership.Covenant Trustee appointed Grant Graham and Brendon Gibson of KordaMentha as Mutual Finance's receivers
Duncan Bridgeman
Tue, 14 Sep 2010
The Treasury will begin paying out investors in failed Mutual Finance under the Crown guarantee two months after the company was placed in receivership.
Covenant Trustee appointed Grant Graham and Brendon Gibson of KordaMentha as Mutual Finance's receivers in July. Mutual owed 340 depositors $9.3 million.
In a report released today, the receivers say they have verified the investor register, enabling the Treasury to begin its payout process.
Mutual had a loan and asset book of $8.23 million at the time of receivership.
The receivers said it was not possible to estimate the level of recovery at this stage.
Based on preliminary estimates there was unlikely to be a return to unsecured creditors.
Mutual is one of seven finance companies to collapse, triggering payouts under the Crown retail deposit guarantee scheme.
The largest payout was to South Canterbury Finance depositors, who received a combined payout of $1.6 billion when the Timaru-based firm went into receivership in late August.
Mutual Finance was run by former Strategic Finance founder Paul Bublitz, who is also involved with Hunter Capital, an Auckland company involved with Viaduct Capital, another finance company also in receivership.
Before its receivership Viaduct was booted out of the guarantee scheme after loans from Hunter Capital Group to Viaduct's shareholder, Phoenix Finance Holdings, breached the Treasury's rules on related-party lending and general business conduct.
Duncan Bridgeman
Tue, 14 Sep 2010
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