Strategic Finance rescue deal terminated

A plan for Strategic Finance's management to buy the company from Australia's Allco HIT with the support of Bank of Scotland International has been terminated, leaving Strategic's future in the hands of its banker and trustee.

The management buyout included CEO Kerry Finnigan and executive director (and former All Black captain) Jock Hobbs.

"The Sale and Purchase Agreement was subject to satisfaction of various conditions and the Board (of Strategic Finance) understands that certain of those conditions had become unable to be satisfied, principally due to the recent events in credit markets adversely affecting the outlook for the New Zealand property finance sector," Strategic Finance said.

"The Board will continue to work with Perpetual Trust Limited (the trustee under Strategic Finance's debenture trust deed), BOS International (Australia) Limited and Allco HIT Limited as to the best course of action for Strategic Finance and its investors moving forward.

"The sale transaction and the capital restructure proposal as previously disclosed to the market will not proceed as originally contemplated."

- INTEREST.CO.NZ