tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, December 5th, 6:53PM

Investments

rss
Latest Headlines

Another finance company shuts up shop

In a further sign of the times, finance company Savings & Loans has all but shut up shop, having repaid all its debenture holders last week and withdrawing its prospectus.

Tuesday, December 7th 2010, 11:31PM

by Jenny Ruth

The repayment included all principal and interest owing.

Managing director Scott Masters says his company has been watching developing events since finance companies started collapsing and the global financial crisis began.

"We're not sure what the market's going to do," Masters says. "We're just going to sit on the sidelines."

Savings & Loans, which specialises in providing residential mortgage second mortgages, will remain operational and intends to continue to comply with all the relevant regulations so it has the ability to raise funds from the public in future "just in case there's an opportunity in the market over the next couple of years. The market will change, as we all know," he says.

But in the meantime, trying to diversify funding sources beyond debentures has been extremely difficult, he says.

The small amount of lending it continues to do will be financed by its owner, the Boric family - director Milenko Boric is father of All Black Anthony Boric.

The company's sister company, Savings & Investments, will continue to operate.

The decision to repay investors comes hard on the heels of Equitable's directors to put it in receivership.

"We're lucky we're small enough that we have the ability to do what we've done," Masters says. "We've managed to survive the last few years by being conservative."

Savings & Loans latest accounts show it made losses in each of the last three years ending March 31, the latest loss being $223,891.

Its shareholder contributed a further $450,000 in equity in the latest year, taking total equity to $1.03 million against total assets of $5.6 million. That's down from $8.4 million at March 31, 2007.

It had $4.4 million in debenture stock at March 31, $2.2 million maturing before September 30 and a further $1.55 million maturing before March 31, 2011. It had been covered by the government's guarantee until October 12.

 

« Banks innovate in short-term ratesPowerco bucks trend in securing bank debt »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • Partners kills its matrix
    “@Backstage, thanks. I agree there is no relationship to CoFI, though, from a service perspective, I have two other providers...”
    2 days ago by JPHale
  • Partners kills its matrix
    “Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which...”
    2 days ago by Amused
  • Partners kills its matrix
    “Insurance companies should stick to their lane. They are not advisers and even those that employ advisers should not be crossing...”
    2 days ago by Tash
  • [GRTV] The nitty gritty of Smart’s ETFs
    “Advisors should consider all gateways into investment markets including cheaply priced ETFs to provide access to low priced...”
    3 days ago by Pragmatic
  • DRS member or not - client care remains advisers’ responsibility
    “FAPs are members of DRS too. Substitute “adviser” for “FAP” and the story is actually a lot more accurate. If...”
    3 days ago by Aggressively_passive
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com