KEY POINTS:
Nelson-based Finance and Investments has become the fifth finance institution to go into receivership in about a fortnight.
The firm, which specialises in car finance, was placed in receivership yesterday by its principals Andrew Harding and Murray Scholfield, owing 370 investors $16 million.
A message on its telephone number today said: "With the announcement yesterday of receivers to LDC Finance Ltd, Finance and Investments is now no longer able to obtain the funding it requires to continue in business."
The Nelson organisation is a partnership and not related to Auckland finance company Finance & Investments Limited, which is controlled by Mark Hotchin and Eric Watson, who also control Hanover Finance.
The receivership of LDC, owing $19.3m to about 1000 depositors, was announced on Tuesday.
PricewaterhouseCoopers partners John Fisk and Malcolm Hollis have been appointed receivers of both LDC and Finance and Investments.
Mr Fisk told The Nelson Mail newspaper that Finance and Investments had been reliant on funding from LDC, and with the receivership of LDC it could not obtain the funding it needed to meet its obligations or continue to trade.
Finance and Investments owed $1.25 million to LDC.
Mr Fisk said Finance and Investments differed from the eight other finance firms that had faltered in the past 16 months, as it was classed as a partnership, rather than a company.
- NZPA
