SCF debenture holders payment delayed
South Canterbury Finance’s 35,000 debenture and deposit holders will have to wait until the middle of next month to their $1.6 billion returned.
Wednesday, September 29th 2010, 11:01PM
The government bailed out SCF investors at the end of last month when it paid $1.8 billion to the company's trustee. Bondholders were paid the $350 million owing to them last week, however debenture holders will have to wait for a couple more weeks.
Trustees Executors regional manager Yogesh Mody says the registry file has been completed and then it will be transferred to Computershare for payment.
This transfer is then subject to an audit. It will probably take a further two weeks to repay investors. Debenture and deposit holders will receive their principal investment, plus their original interest rate up to August 30, then 3% from August 31 to the date of payment.
"We understand that the process is taking longer than some may have thought," Mody says. "However the processes of auditing and confirming investor details on the register are essential to ensure investors are paid the correct amount."
"We fully appreciate the SCF security holders want their investment returned to them as quickly as possible."
SCF was sent to the receiver at the end of last month after it failed to find a new investor, triggering a call on the retail deposit guarantee. The government stumped up a $1.775 billion cheque to cover the firm's debts and take on the role of sole creditor.
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