Its not an injection.. it's proposed as a purchase off 80% of shares
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I took from Sandy's latest announcement that they are looking at selling 80% of the Good Bank for $100m. He reckons the owner of the Bad Bank would have different ownership characteristics - so they are hunting for two owners. But where would Helicopters. Dairy and Scales go?
Evenin' all. . . .
The SCF010's are trading round the 23% mark - down somewhat from their recent giddy heights.
And the SCFHA's seem to have stabilised at around 15c.
Anyone got any iseas what this might mean ?
The 010's have a somewhat larger $value turnover than the FA's. . . . . .
Extract from Chris Lee's article today that might interest some here.Quote:
South Canterbury Finance - We are entering a tense month for SCF management, and investors.
Sandy Maier has 26 business days (and a few long weekends!) to negotiate with potential new owners before a waiver from the trust deed expires on 31 August.
Maier is trying to retain the Good Bank, Bad Bank and Non finance related assets together for the sake of the SCF brand, believing it to have a future. I question whether this value is available for him to defend.
Buyers for the whole of SCF do not appear to exist. There may be several buyers for the parts (Good bank, Helicopters, Scales or Dairy Holdings) but sales of these parts may leave current SCF shareholders and lenders (debentures, bonds) only holding Bad bank.
Remember also that Torchlight has prior access to some of the best assets as collateral for its loan that helped repay the USD facility last year.
The sale of the best parts of the business is surely an unacceptable result for the trustee? It certainly would be for lenders.
Given the risk that the government may become one of those lenders it is hard to imagine them being very tolerant of a plan that sells the jewels (cheaply?) to third parties.
We understand the government refused to issue consent for the capital injection offered by Torchlight earlier this year. I hope they exercise the same rights with any new offer.
In my opinion the likely bidders are not businesses from the finance sector with a desire to rebuild the business. I think the bidders are likely to be trade buyers (Helicopters, Scales, Dairy Holdings) or vulture funds (trying to profit from the sale of SCF good loans).
Neither type of buyers are likely to be interested in the outcome for current lenders.
SCF directors, Maier and SCF's trustee, especially the trustee, need to be single minded in their efforts to protect current, and potential, lenders.
You may note that I haven't asked these people to protect the shareholder, Allan Hubbard. I am quite sure he would concur with the need to protect SCF lenders interest first.
Even the great man himself Mike Hosking says Hubbard ain't really done anything wrong .... if Mike says so it must be true
NewstalkZB this morning .... important rave peob on the website already
When are the SM's supposedly going to report something or is it such a complicated web it is like asking how long is a piece of string.
It seems to me the longer it goes on the more extreme each sides viewpoint gets - both sides digging their toes in to say they are right.
Thanks MM - so another month at least to wait!
Yes, and an interesting month it will be to!. AH and Aorangi will be waiting for news. And SCF have till the end of August to get their breach sorted - so waiting for news there. Also SCF released their full year results 28 August last year - can they do the same this year? And I think there is an S&P review in there somewhere as well.
You're joking right ?
This time they are being properly audited so judging by the the half year release, early April, we could expect to see audited full year financials around early October....if they last that long, opps, did I really say that...
LOL I think they're too busy doing yet another downwards revlauation on Hand-over assets, should that read liabilities ?Quote:
Sounds like the kind of deal that Allied Farmers may be interested in. Toddy
They'll make the end of August no problems. The half year accounts came out in just 2 months. And that was using decent auditors who have already gone through all the slightly iffy loans with a fine tooth comb. In the first few months at the healm Sandy will have put in really robust systems which will give him real time reports on the financial situation of the business - so no delays there. Helicopter and Scales will be dead easy to produce. There are all the old debenture holders who simply rolled over their investments so nothing difficult there. Related Party transactions will have been smoothed out (like we've had Lachie pay back his money) so there will be no jiggery pokery there. AH's capital injection has already been covered and the provisioning has been well flagged. Theres no trickery between Aorangi and SCF so there shouldn't be delays there. And Treasury approved an extension under the Deposit Guarantee on the available professionally prepared accounts. I know they had a slight delay producing the 31 March Interim report - but now those difficulties are out of the way and SCF will have taken NZX's stern warning on board. Nope - I can't see any reason why there should be any delay this year - in fact I reckon they will be even faster - perhaps mid August!