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South Canterbury receiver sells stake in Financial Synergy

Published: Mon 1 Aug 2011 03:45 PM
South Canterbury receiver sells stake in Financial Synergy unit
By Paul McBeth
Aug. 1 (BusinessDesk) – The receiver of South Canterbury Finance Ltd. has sold the failed lender’s stake in Financial Synergy Ltd. (FSL) to local interests including co-owner David Hair.
Receiver Kerryn Downey of McGrathNicol said the sale recovered the full value of a loan, but didn’t specify the price. The stake was bought by D Investments Ltd., which names Hair as its major shareholder, and Sectarian Securities Ltd.
“FSL has successfully navigated itself during the SCF receivership and is in great shape,” Hair said in a statement.
FSL largely operated as a standalone company since it was set up in 2002 and provides financing options to help corporates pay their insurance premiums.
With the sale of FSL, South Canterbury has successfully exited its holdings in Helicopters NZ Ltd., Scales Corp., and some dairy farms, raising more than $200 million.
The receivers have also put the failed lender’s so-called ‘good bank’ assets on the block, which were valued at $939 million in their first report. They had previously put SCF’s three-quarter stake in the Face Finance loan book up for sale in February.
The Serious Fraud Office has yet to decide on whether it will pursue prosecution over SCF’s failure, and is looking at a handful of the lender’s transactions.
The white-collar crime investigator charged Hubbard with 50 counts of fraud in relation to his investment vehicles Aorangi Securities Ltd. and Hubbard Managed Funds.
(BusinessDesk)
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