The receivers of Tauranga-based Western Bay Finance have agreed to sell a substantial portion of the company's loan book to Southland Building Society subsidiary Finance Now.
Receivers Grant Graham and Brendon Gibson said today that loans with a face value of $30 million were being sold for cash of $27.9 million.
The transaction was due to settle on October 2 , and the proceeds of the sale, combined with collections to date, would enable a first dividend of 65 cents in the dollar.
That first dividend should be in the hands of debenture holders by the middle of October.
The timing of further payments from realisations of remaining assets depended on the timing of further collections.
The receivers said the Finance Now deal was consistent with their earlier recovery estimate of 75 to 80 cents in the dollar.
Western Bay stopped granting new loans in June after the supply of funding from retail investors dried up, and collapsed in August owing more than $48 million to investors.
It was the third finance company collapse this year following Provincial Finance and National Finance 2000.
- NZPA
$30m of Western Bay loans sold to Finance Now
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