Receivers have appointed the local branch of Deutsche Bank as sale advisor for South Canterbury Finance's core finance business.Kerryn Downey and William Black of McGrathNicol said the core finance business comprised of South Canterbury Finance's branch n
Receivers have appointed the local branch of Deutsche Bank as sale advisor for South Canterbury Finance’s core finance business.
Kerryn Downey and William Black of McGrathNicol said the core finance business comprised of South Canterbury Finance’s branch network, including subsidiaries such as FACE Finance and Southbury Insurance.
The SCF Group finance assets include hire purchase, floor plans, leasing of plant and equipment, vehicle and equipment, personal loans, business term loans and revolving credit facilities, mortgages over property and other financial instruments, including consumer loan insurance.
“South Canterbury’s size and complexity makes it imperative that we work closely with our advisors in determining the best sale strategy to deliver the optimal outcome for the Crown and other stakeholders,” Mr Downey said.
South Canterbury collapsed into receivership in late August, triggering a $1.775 billion payout to investors and prior charge lenders under the Crown Retail Deposit Guarantee Scheme.
At the time of receivership South Canterbury’s core finance business had been split into two: A “good bank” with loans worth an estimated $900 million and a “bad bank” of toxic assets.
Mr Downey said a formal sale process was unlikely to commence until late first quarter 2011.
Last week, McGrathNicol appointed Goldman Sachs & Partners to advise of on the sale of two South Canterbury subsidiaries – Helicopters NZ and Scales Corp.
While the government paid out $1.6 billion to depositors under the guarantee, it is hoping to claw back as much as it can from receivership.
Prime Minister John Key has said the ultimate cost to the taxpayer of the guarantee is likely to be between $300 and $400 million.
