Receiver flags Strategic Finance property deals for this week
The receivers for failed financier Strategic Finance say several property transactions are scheduled for this week.
Monday, August 2nd 2010, 9:31PM
by Paul McBeth
The advice, posted on receiver PricewaterhouseCoopers' website, says it expects to announce the "timing and quantum" of the first payment to secured debenture holders by the end of the week.
PwC's John Fisk told www.depositrates.co.nz last week that several parties were undertaking due diligence on buying the finance company's loan book, and he expected to make an announcement mid-way through this month.
The announcement comes after the firm was put into liquidation last week, with the receiver telling the trustee some of Strategic's transactions prior to its collapse needed more scrutiny.
PwC said the liquidation will not impact on the receivership, which will continue the loan realisation and sales process to return secured investors' principal.
Trustee, Perpetual Trust, applied for the liquidation order on June 17, and the High Court in Wellington granted the order on July 26. John Cregton and Andrew McKay of Corporate Finance were appointed liquidators. Corporate Finance is liquidating related companies Strategic Equity Partners and Strategic Investment Group.
Perpetual called in the receivers in March, ending a moratorium arrangement that had been in place since December 2008. The finance company missed its milestone repayment on January 7 after it failed to generate enough loan recoveries, and former chief executive Kerry Finnigan had put a Hanover-style debt-for-equity swap before the trustee in a bid to stave off receivership.
The company's loan book, which is the company's most valuable asset, has a net value of $229.1 million, though the receivers have relied on the figures provided to them. Strategic owes 11,000 investors about $391.5 million.
Paul is a staff writer for Good Returns based in Wellington.
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