Report to detail SCF loans

Details of South Canterbury Finance's bad loans will not be made public until the release of the receivers' first report, which is due in the next seven weeks.

The Timaru Herald tried to obtain a list of the "impaired loans", thought to be worth around $600 million and a key reason for the institution's collapse, under the Official Information Act, but was informed that receivers are exempt from the Act's provisions.

The news came as it emerged that the Government has revised the projected cost to the taxpayer of the SCF collapse down to $400m.

SCF was placed in receivership last Tuesday after it was unable to bring in a required $300m in equity to keep it going.

Receivers were appointed and the Government handed over $1.7 billion to pay out 30,000 debenture holders under the Treasury retail deposit scheme.

A spokesperson for receivers McGrath and Nicol said the first report, required by the Receivers' Act to take no longer than 60 days, would detail the impaired loans.

On Monday receivers called for expressions of interest in SCF's assets.

Receivers Kerryn Downey and William Black said that since their appointment they had worked closely with SCF senior management and staff.

"Over the past week, we have secured the support of senior management and staff, and we are now working with them, and with other stakeholders, to plan how we will support the continuing business operations of the group, and to begin preparing the group's assets for a formal sale process."

The receivers said they had already fielded a significant number of enquiries from prospective buyers, and are working with the Crown to compile a co-ordinated register of interest.

The Government now thinks the final cost to the taxpayer of the SCF collapse will be no more than $400m.

A Trustees Executors spokesperson yesterday confirmed the SCF debenture holder payment would take four to six weeks.

- © Fairfax NZ News

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