SCF investors to get repaid next week

Photo / Sarah Ivey

Investors in failed lender South Canterbury Finance Ltd. will get repaid next week.

Trustees Executors, the firm's trustee that has held the government's
$1.6 billion bailout cheque for almost two months, said it's completed the audit and transfer of the register of some 35,000 debenture and deposit holders and will make the payment on Oct. 20. That's almost a month after about 7,000 bond holders owed $350 billion were paid.

"Getting to this point has taken a few days longer than the four-to-six weeks initially estimated," said regional manager Yogesh Mody in a statement. "We wanted to take a prudent approach to ensuring investor details were as up-to-date and accurate as possible."

SCF was sent to the receiver at the end of August after it failed to find a new investor, triggering the biggest single call on the retail deposit guarantee. The government stumped up a total of $1.775 billion to take over the firm's debts and assume the role of sole creditor.

Debenture and deposit holders will receive their principal investment, plus their original interest rate up to Aug. 30, then 3% from Aug. 31 to the date of payment.

The Treasury is expected to release official documents relating to SCF's collapse and the retail deposit guarantee scheme tomorrow.