Crown second in line over helicopters sale

Helicopters NZ has been sold to Canadian Helicopters Group. Photo / Supplied

Only about $105 million of the $160 million conditional sale of South Canterbury Finance asset Helicopters NZ looks to be headed for the taxpayer's pocket.

Kerryn Downey, SCF receiver of McGrathNicol, revealed yesterday how prior-ranking, secured creditors stood in front of the Crown for the first slice of money from the sale of the country's largest chopper business to Canadian Helicopters Group announced this week.

"There are prior-ranking, secured creditors owed $55 million," he said. Helicopters NZ was a successful sale, he said.

"The sale of Helicopters is three months-plus out from settling because there are two key conditions: Civil Aviation Authority approval to the transfer ... and Overseas Investment Office approval. We have got a good price. It's because of a competitive process. We held out because Helicopters is in a sound position," Downey said.

No definite date was set for repaying the Crown.

"It won't go to the Crown until we've completed the conditions. It will be this year, I suspect. Once we have been through that process, we will settle so it will be at least three months away and then settlement will be made with the prior-ranking, secured creditors," he said.

About $150 million might flow from two remaining "good bank" assets - Scales Corporation and Dairy Holdings - returning relatively little of the $1.7 billion bailout of investors of the failed Timaru financier.

But information on the sale prices of Scales and Dairy is not forthcoming: Downey refused to provide much detail on those sales, including the numbers short-listed as buyers but said the deals were progressing well and he was confident both would be sold soon.

"There's a reasonable chance that both will sell by the end of this year," he said.

Downey said Dairy Holdings' shareholder Alan Pye had agreed to sell his shares in that business, increasing the stake for sale to 83.3 per cent, making it more marketable.

'Eighty three per cent is a lot better than 64 per cent. We've had discussions with Alan Pye for six weeks or so and it now means it's much more saleable," he said. "We have a very high-profile group of potential purchasers and May 6 is when indicative bids have to be in. We may push that out a little."

The receivers are being advised on the Dairy Holdings sale by First NZ Capital, working with Murray & Company of Christchurch.

"Scales is more progressed in terms of the process. We have legally binding bids. I can't discuss how many but they are from overseas and New Zealand. We're very pleased about the quality of the bidders or offerers and we're working our way with the advisers," Downey said.

Scales' large old building on Montreal St was damaged in the February 22 earthquake "but we don't know how much". Downey worked from there until February 22. "It's not able to be occupied for a year," Downey said. A coolstore leased by Scales suffered minor damage, he said.

"We are working from Auckland at the moment. I'm down there once every couple of weeks," he said.

HELICOPTERS NZ
* $160m conditional sale to Canadians this week.
* 100pc owned by South Canterbury Finance.
* NZ's largest, most diverse chopper owner/operator.
* In business 55 years.
* Nelson-headquartered.
* Works in NZ, Australia and Asia.
* Has 11 bases.
* Employs 181 people.
* Owns 33 helicopters.
* $83m annual revenue.
* Clients include Shell Todd Oil Services, Australia Worldwide Exploration, OMV Maari Field, Origin Energy Resources, Rio Tinto and US Department of Defence.

Source: Canadian Helicopters Group Inc, Montreal