Small Dunedin-based finance company St Kilda Finance has gone into receivership in the face of deteriorating credit conditions.
About $6.9 million in debenture deposits from 358 investors is involved.
St Kilda was established in late 2003 as a second mortgage lender, although some first mortgage business was alsowritten. It is the brand name of All Purpose Finance, which asked its trustee Trustees Executors to appoint receivers.
St Kilda chairman John Farry said today that the company started a managed wind down from late 2007, due to increasingly adverse trading conditions.
That had gone well until recently when the global financial crisis "really" started to have an impact in this country. As the credit squeeze grew the value of land and building security diminished, Mr Farry said.
Directors had asked for a receiver to be appointed to ensure remaining investment funds were protected in an orderly realisation of the company's remaining securities.
The receivers are Stephen Tubbs and Colin Gower of BDO Spicers, which said it was now moving to collect all information relevant to St Kilda's financial position, to assess its ability to meet obligations to investors.
Initial advice to investors was expected next week, with a fuller report in about a month.
