Gisborne's Rockforte Finance put into receivership owing NZ$3.2 mln; Government will pay

Treasury has announced that Gisborne-based Rockforte Finance has been put into receivership owing 70 depositors around NZ$3.2 million. It is covered by the Government's Deposit Guarantee and eligible depositors will be paid out, Treasury said, adding however that new depositers after December 31 will not be covered because Rockforte did not agree to an amended trust deed. Here is the full statement below from Treasury:

All eligible Rockforte Finance Limited depositors will get the money they are entitled to under the Crown retail deposit guarantee scheme, Treasury Director of Financial Operations Dr Brian McCulloch said today. The trustee for Rockforte Finance Limited has announced the appointment of receivers to the company. That constitutes a default event under its Crown Deed of Guarantee, triggering the Crown’s guarantee. Eligible depositors with Rockforte Finance will be contacted by the Treasury in about six weeks and provided with information about how to claim under the terms of the Crown retail deposit guarantee. Rockforte Finance is a Gisborne based financial institution with around 70 depositors and approximately $3.2 million in deposits. Rockforte Finance declined to sign a replacement guarantee deed at the end of last year, so the Crown retail deposit guarantee does not cover any new deposits or the roll-over of previous deposits after 31 December 2009. “The Crown stands fully behind its guarantee commitments, and we expect an orderly process of payment to eligible Rockforte Finance depositors,” said Dr McCulloch. “It is important to remember that it is the eligible depositors that are guaranteed rather than the company. The Crown retail deposit guarantee scheme was introduced to maintain depositor confidence by protecting eligible depositors. “Over the life of the scheme, exits, mergers and wind-downs will occur. This is normal financial sector activity and is expected to continue,” said Dr McCulloch.