New team at Viaduct Capital shake off past prospectus issues
Viaduct Capital, the finance company that was suspended by the government's deposit guarantee scheme earlier this year, has had a shake-up in its management team that has seen Bruce McKay and Richard Blackwood take over the reins.
Wednesday, October 28th 2009, 1:00AM
by Paul McBeth
Former chief executive Nick Wevers left the company last month on "amicable and agreeable" terms to pursue his interests in the property sector. This leaves chief financial officer McKay and senior executive lending Blackwood to lead the team as co-managing directors with "more of a team approach."
"We've got an advantage in that we're seeing quite a considerable amount of work coming through our doors - a lot of which we wouldn't touch," said McKay. "If we don't deliver results we get everything we deserve."
Viaduct removed its prospectus in July after The Treasury pulled the plug on its guarantee in April, on the basis that the company failed to comply with rules regarding related party lending and general business conduct around due diligence. McKay said it was a difficult process that slowed Viaduct down from putting out a new prospectus, as none of the government agencies had dealt with these kinds of issues before.
Since then, the company has released a new prospectus and is focused on attracting new money and to take advantage of any opportunities that arise as the economy begins to show increasing signs of life.
Still, McKay is doubtful as to whether Viaduct will pursue cover under the extended scheme and he expects to see quite a few finance companies pass up the guarantee as the price of admission puts off all but the largest players.
"We're trying to get the best rating we can," but because of Viaduct's size it may reach the BB threshold and qualify, he said. "There will be fewer finance companies in that camp than out of it."
Though Viaduct is currently small enough to avoid the Reserve Bank's prudential requirements for a credit rating, McKay said the company is talking to Standard & Poor's to cater for future growth.
Paul is a staff writer for Good Returns based in Wellington.
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