Receivers make move on major SCF companies

Photo / Dean Purcell

Two more companies connected to South Canterbury Finance have been placed into receivership.

McGrathNicol's Kerryn Downey and William Black were yesterday appointed to manage Southbury Corporation, which owns 100 per cent of SCF and its 100 per cent shareholder Southbury Group.

Allan Hubbard owns about 70 per cent of Southbury Group although his personal finances have been under statutory management since June 20.

Downey said the receivers had taken possession and control of all the assets of the Southbury companies.

The two companies held a diverse range of investments, many of which were funded by South Canterbury Finance and SCF was a major creditor of the Southbury companies.

Downey said the receivership was necessary to gain access to the records and better management control of the group. "It's a critical step to protect value and ensure we get the best possible outcome for the Crown."

McGrathNicol are already the receivers for South Canterbury Finance, which collapsed on August 31 resulting in a Government payout of $1.775 billion to depositors and first ranking creditors.

Downey said the move would also help in ongoing investigations into SCF's finances.

The Serious Fraud Office last month said it was investigating up to five related party loans made by SCF.

Downey said the Southbury receivership would not affect the sales process for SCF's interests in Helicopters (NZ) or Scales Corporation.

Goldman Sachs & Partners have been appointed to advise on the sale of the two investments.