by Paul McBeth
Bublitz, who was set to take full control of the minnow finance company in October, said the trustee took an "extremely conservative" view of the firm's cash flow after it breached the minimum capital ratio under its trust deed.
"The board is deeply disappointed that it was not given the opportunity to resolve what it considers was an issue that was resolvable and considers that the trustee has acted in his own interests rather than those of the investors in placing the company into receivership," Bublitz said in a statement.
Covenant appointed Grant Graham and Brendan Gibson of KordaMentha to act as receivers after they undertook a review of Mutual's receivables ledger. Some 340 investors are owed $9.3 million, though Treasury says only about $8 million of that is covered by the guarantee.
Bublitz was one of the founders of Strategic Finance and exited that investment when it was sold to Allco, and cropped up last year when his related-party loans to Viaduct Capital shareholder Phoenix Finance Holdings were frowned on by the Treasury and caused the lender to lose its guarantee.
Since then, Viaduct was sent to the receivers, and Bubtliz emerged to take over Mutual, which was set to become 100% in October.
The Treasury said it will take about three or four months to get the necessary information about depositors, and once that is complete, it will be in touch with investors covered by the guarantee.
Paul is a staff writer for Good Returns based in Wellington.
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