Banks enter SCF picture

Photo / Dean Purcell

The receivers of South Canterbury Finance are to appoint an investment bank to handle the sale of the assets after receiving more than 150 inquiries from potential buyers.

McGrathNicol's Kerryn Downey and William Black yesterday called for investment banks to submit proposals for advising on and selling the assets. Receivers were appointed to the failed finance company on August 31.

The collapse has so far cost the Government $1.775 billion to pay out depositors under the Crown deposit guarantee scheme and first ranking debtors to ensure the receivership is run as smoothly as possible although it expects to recoup much of it through the asset sale.

Downey and Black said more than 150 enquiries had been received from New Zealand and overseas investors interested in acquiring the various assets of the company.

A spokesman for the receivers said they had also decided not to make any staff redundant at this stage. They said retaining staff and senior management was essential "if we are to continue to maintain ongoing business operations ... and preserve the value of ... assets".