SCF's lending business operable without more Govt cash, say receivers

Photo / Sarah Ivey

South Canterbury Finance does not require any more money from the Government to maintain its lending business, a spokesman for the receivers says.

McGrathNicol's Kerryn Downey and William Black yesterday released a statement promising to continue to support the failed finance company's business and consumer customers - provided they meet the company's lending criteria.

The receivers said continuing the group's funding lines would help maintain its business operations and preserve the value of the assets.

"We recognise the importance of stable ongoing funding to SCF Group's customers and we want to reassure customers that funding will continue where lending criteria are being met," they said.

A spokesman for the receivers said the business was operating under the same lending criteria as before the receivers were appointed.

The decision means that borrowers like farmers will continue to be able to access revolving credit facilities to help make capital available during seasonal ups and downs.

But it would not require any equity to be injected from outside of the business from the likes of the Government, the spokesman said.

"The business is still trading, people are still sending money in. It does not need new equity from outside to keep going."

The Government has already paid out $1.775 billion to South Canterbury's depositors and debtors, although it expects to recoup about $1 billion from selling the company's assets.

Downey and Black, who were appointed on August 31, earlier in the week called for those wanting to buy the assets of South Canterbury to come forward.

Those assets include its loan book as well as stakes in apple exporter Scales Corporation, Helicopters and Dairy Holdings.

The spokesman said more interested parties had got in touch during the week but he could not give any figures on the number of potential bidders.

The asset sale process was still in the early days, he said.