SCF owed $103m by parent company

Photo / Sarah Ivey

South Canterbury Finance's parent company owes it more than $103 million, a receivers' report has revealed.

McGrathNicol's Kerryn Downey and William Black yesterday filed their first report on Southbury Corporation, the 100 per cent owner of South Canterbury Finance, for which they are also the receivers.

Southbury Corporation is wholly owned by Southbury Group, of which Allan Hubbard owns about 70 per cent. Hubbard's assets have been under statutory management since June 20.

Downey and Black were appointed to both Southbury Corporation and Southbury Group on November 3 after South Canterbury Finance demanded repayment of money owed to it and the demand was not met.

"At the date of our appointment $103,908,343 was owed to South Canterbury Finance and remains outstanding. Interest continues to accrue on this amount," the pair stated.

Southbury Corporation's major assets are an $18.1 million loan to its parent company Southbury Group and its investment in South Canterbury Finance worth $245.5 million.

South Canterbury Finance is in the process of selling its major assets including stakes in Helicopters NZ, Scales Corporation and Dairy Holdings.

"Until the sales process for South Canterbury Finance is complete, we are unable to confirm the likely recovery for Southbury Corporation's sole shareholder ... Southbury Group."

The receivers also said they were aware of a number of concerns raised by investors and other parties in relation to the activities of South Canterbury Finance Group before their appointment.

"We are aware ... that Southbury Corporation may have been a party to some of these transactions."

Any potential breaches of legislation would be reported to the authorities, they said.