Rates round-up: February 7
Marac rating updated and gone; Lombard trial update; SCF receivers sell more assets.
Tuesday, February 7th 2012, 6:30AM
Marac rating update and gone
Standard & Poor's has affirmed its 'BBB-/A-3' issuer credit rating on Marac Finance and subsequently withdrawn the ratings at the request of Marac's 100% parent entity, Heartland Building Society Ltd.
Judgment reserved in Lombard case
The trial of the former directors of Lombard Finance has finished, with Justice Robert Dobson reserving his judgment in the case.
The trial, which took place in the High Court at Wellington, ended last Friday after the defence lawyers for the former directors finished summing up their case.
Justice Dobson said he would attempt to reach a decision by February 24 but the process could take longer.
Michael Reeves, Lawrence Bryant and former MPs Sir Douglas Graham and Bill Jeffries face charges brought by what was then the Securities Commission (now the Financial Markets Authority), alleging they made untrue statements in a prospectus, investment statement and advertisements in 2007.
Lombard collapsed in April 2008 owing $127 million to more than 4000 investors.
SCF receivers sell Dairy Holdings stake
The receivers for South Canterbury Finance have sold its 33.6% in stake in Dairy Holdings to existing New Zealand shareholders including NBR Rich Listers Colin Armer and Alan Pye.
The receivers, Kerryn Downey and William Black of McGrathNicol, said US shareholders who held 25% of the shares in Dairy Holdings, followed a parallel process and also sold their shares to the existing NZ shareholders.
Companies Office records show both Armer and Pye have updated their shareholdings.
The sale ends a feud between Armer and the receivers, which saw Armer and his wife Dale file a High Court claim alleging the receivers had been trying to blackmail them into selling their stake.
The transaction values Dairy Holdings in excess of $535 million, enterprise value. SCF will receive $56.4 million from the sale of its 33.6% interest.
The Dairy Holdings Group is the largest corporate owner of dairy farms in New Zealand. The group owns 58 dairy farms and owns and leases a further 15 grazing blocks, all in the South Island, covering a total land area of 18,000 hectares.
In the 2010/11 season, the group produced 14.1 million kg of milk solids from approximately 43,400 milking cows.
Downey said, "This has been a lengthy and robust sale process that commenced in December 2010. We have worked closely with other shareholders and our sale advisors and are delighted that the sale has been to NZ buyers and will not require OIO approval. This is a good result for SCF, the Crown and the Trustee."
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