South Canterbury Finance (SCF) receiver McGrathNicol has put the group's 75% owned subsidiary Face Finance on the block.
Face Finance, which specialises in plant and equipment finance for the road transport, aviation, earth moving and construction sectors from Auckland and Christchurch operations, had total loans net of impairment provisions worth NZ$196.9 million at the time of McGrathNicol's first receiver's report.
The report notes total assets of NZ$205 million and total liabilities of NZ$196.8 million leaving net assets of NZ$8.2 million. Face Finance was fully funded by SCF.
McGrathNicol's Kerryn Downey and William Black said Face Finance has operated largely on a standalone basis from the rest of the SCF group with a separate distribution network and customer relationships.
Downey and Black said a sale offered the opportunity to transition the business out of receivership and provide greater certainty to its customers. The sales process will be run by Deutsche Bank.
"The receivers have yet to announce the sale process for the consumer and commercial lending businesses of SCF, although they expect this process will commence within two to three months," said Downey and Black.
Senior managers Tim Murphy and Warrick Baxter are Face Finance's other shareholders.
(Update adds additional detail, link to receiver's report).
2 Comments
Here here, it is only taxpayer money its not real
Receivers have picked off were the Auditors, Trustees and Lawyers left.
No real integrity, just milk it for all its worth.
I doubt it is going to go for $8.2m - How many of the Loans are to Hubbard's mates, not documented or on sweet heart terms?
Some more tax payer money wasted on Hubbard. How are the sales of the assets goign B English, you know the 1 billion dollars you said you would get from them? Any sold? No? Really? the only one who is doing alright out of this is receiver McGrathNicol wonder what there fees are up to.
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