South Canterbury Finance receiver McGrathNicol takes reins at Allan Hubbard's Southbury Corporation

Read McGrathNicol's statement below:

Kerryn Downey and William Black of advisory firm McGrathNicol were appointed Receivers and Managers of Southbury Group Limited and Southbury Corporation Limited (the “Southbury Companies”) last night (3 November 2010).

Kerryn Downey and William Black are also the Receivers and Managers of South Canterbury Finance Limited (SCF) and its 13 charging subsidiaries and were appointed on 31 August 2010. Southbury Group Limited was incorporated in December 1987 and holds 100% of the shares in Southbury Corporation Limited, which was incorporated in September 2009. Southbury Corporation Limited holds 100% of the shares in SCF.

The receivers have taken possession and control of all of the assets and undertakings of the Southbury Companies that together, through funding by SCF, hold a diverse range of investments.

SCF is a major secured creditor to the Southbury companies.

Kerryn Downey said that 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. It will also help in ongoing investigations into SCF’s finances,” he said.

The Southbury receivership will not affect the sale process for SCF’s interests in Helicopters (N.Z.) Limited or Scales Corporation Limited (Scales). Both HNZ and Scales are separate from the core finance business of the SCF Group, are not in receivership and have leading positions within their respective industries.

“And South Canterbury Finance will continue to trade as usual,” Mr Downey said.

The South Canterbury Finance receivership is the largest and one of the most complex in New Zealand’s history. It is also the only finance company in receivership where the company and its 13 subsidiaries have continued to trade.