On the 18th of June the SCF 75% interest in Kelt Finance was sold to interests of the Kelt family.Quote:
Originally Posted by winner69
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On the 18th of June the SCF 75% interest in Kelt Finance was sold to interests of the Kelt family.Quote:
Originally Posted by winner69
There is an article in the Herald today that seems to imply that, whilst the first ones took longer, the process has improved and gotten faster but depends on the quality of paperwork (fair enough I suppose):
NZ Herald - 5 Jul 2010
"The first group of Vision Securities investors, which were told the company had failed on April 1 this year, received payment on Friday"
So currently about 13 weeks by the sounds of it.
Alan.
As long as they're not desperate for the cash, having funds still earning good interest and covered by the guarantee doesn't sound too bad to me.
Weren't people saying recently that AH did business on trust and a handshake. If that was his way of doing business I'm not so sure SCF would have significantly better systems than Vision. Sure they would have to be relatively robust but with the prospect of shelling out $1.3b I'd imagine Treasury will be looking pretty closely at all the papers flowing across their desk - and that won't be a fast process. 14 days just isn't going to happen - so best SCF doesn't' go under to test assertion.
The fact is that the GG only applies to interest earned up until the date of default. From then until repayment by the Crown you are out of luck with further interest. So it looks like you take an opportunity cost of 3 months interest but at least you get G risk at a decent yield.
Indeed - I don't have spare cash right now (I'm fully invested in listed stuff), but if I did, it woudn't worry me one bit if I had to wait three months to get my guaranteed pay-out.
Most investors have rolling maturities anyway, so liquidity isn't a major issue, and if you puit those across two or three banks / guaranteed finance companies, you wouldn't have too much to worry about in general.
Alan.