SCF receiver puts $200m loan book up for sale

The receivers for South Canterbury Finance have put up one of the stricken Timaru lender's loan books on the block as it continues to squeeze whatever value is left in the businesses.

Kerryn Downey and William Black of McGrathNicol have begun the sale process of three-quarter-SCF subsidiary Face Finance, which focuses on commercial plant and equipment lending the consumer and commercial lending.

Other businesses of SCF will go up for sale within the next three months, they said.

"The potential sale would offer the opportunity to transition the business out of receivership and provide greater certainty to customers going forward," they said in a statement.

Face Finance, which is also owned by Warren Baxter and Tim Murphy, had a loan book worth $197 million after impairments, as at August 31, and total assets worth $205 million, according to its first receiver's report.

Stripping out the $197 million loan from parent SCF, the receiver estimated net assets worth $8.2 million.

The sale will be conducted by Deutsche Bank AG, which is advising Downey and Black on the recovery from the core finance business.

SCF called in the receivers at the end of August after it failed to bring in new cash to keep it afloat, prompting a call on the government's deposit guarantee scheme.

The Crown paid out all other creditors to assume control of the lender, and is looking to recoup as much of the $1.6 billion payment as it can.