The sale of Helicopters NZ netted $43 million for the Government. Photo / Supplied
The sale of Helicopters NZ netted $43 million for the Government. Photo / Supplied
The Government will set up a company to manage the distressed assets in the failed finance companies that called on the Crown's retail deposit guarantee.
Finance Minister Bill English said the receiverships of South Canterbury Finance, Allied Nationwide Finance, Vision Securities, Mascot Finance, Mutual Finance and Rockforte Finance had reacheda stage where all of the assets that can easily be sold have been. The new unit will manage about $350 million of assets and save the Government about $13 million over two years with cheaper management costs.
"Bringing these companies together will create economies of scale, allow the use of specialists in distressed assets across all six firms, reduce monitoring costs, and give the Crown greater control over the sales process," English said.
The cost of setting up the company will be about $800,000.
The Government has received about $523 million from the recoveries, most of which has come from SCF. Combined with the residual $350 million in distressed assets, that still leaves a shortfall of about $1.13 billion on the $2 billion extended under the deposit guarantee scheme.
The latest SCF receivers report showed the failed lender repaid $345 million to the Government, having recovered $262.6 million from loan book realisations in the six months ended August 31. In the prior six months it clawed back $238.7 million in repayments and paid the Government back a further $50 million this month.
SCF contributed $209 million of the repayment to the Government, while other entities in the group also made payments: Face Finance repaid $85 million, Helicopters NZ netted $43 million and the sale of investments held by Hornchurch led to an $8 million repayment, the report said.
In August, Japanese investment bank Nomura Holdings bought $123 million of loans from SCF for an undisclosed price. A stake in Scales Corp has also been sold for $44 million, along with $100 million of Face Finance loans for an undisclosed price.
Receivers Kerryn Down and William Black of McGrathNicol say the sale process for the firm's last major asset, a one-third stake in Dairy Holdings, is progressing.
