Hawkins' firm buys loan book

Failed used-car dealer and financier National Finance 2000's loan book has been sold to convicted fraudster and 80s high-flyer Alan Hawkins' NZAX-listed finance company Cynotech Holdings for a third of its face value.

National Finance receiver Colin McCloy, of PricewaterhouseCoopers, said it had been sold "to a party associated with Cynotech" for $7.7 million.

The loans had a face value of $23.5 million, although about $6 million had been written off, while others might not be collectable.

McCloy said he planned to return 30c in the dollar to National Finance's more than 2000 debenture stock investors next week. He expected they would eventually recover 40c-45c in the dollar from their investment.

"Regretfully the position for subordinated investors has not changed ... and they will not recover anything from the assets in receivership."

National Finance and its related car dealership, Payless Cars, were placed in receivership in May. Both companies were headed by businessman Allan Ludlow, who touted for funds in television commercials even as the companies were struggling.

Former Equitycorp boss Hawkins is Cynotech's chairman. In a statement to the Stock Exchange the company said it had arrived at the price after due diligence. The transaction was a major one and required shareholder approval. Until it was gained, the assets were being held by a third party.

Cynotech shares closed unchanged at 12c yesterday.