Gidday
Appears $125 Mill scf010 Grinning all the way to the bank & $100 Mill SCFHA very dubious.
Face value interest was 10.43% & 5.61% so there wasn't a good risk/reward equation there.
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Gidday
Appears $125 Mill scf010 Grinning all the way to the bank & $100 Mill SCFHA very dubious.
Face value interest was 10.43% & 5.61% so there wasn't a good risk/reward equation there.
FORMER CHIEF EXECUTIVE 'GUTTED'
Former SCF chief executive Lachie McLeod said he was gutted by the demise of the finance company which has ''battled for the last two years'' with problem loans.
When asked about Allan Hubbard's role in the failure of the company, McLeod said he did not want to go into detail about the former chairman.
Asked about Hubbard's health and demands of having to be on regular kidney dialysis, McLeod said he did not want to comment.
"It's been bloody hard work for everybody and it's not time to comment on any of that really."
McLeod said he personally had worked as hard as anyone on SCF during the period he was with the company to ensure it was a going concern.
Asked about his performance as chief executive with SCF, McLeod said: "That's a hard question as well, but I guess no-one bloody worked harder in the company than myself.
"That's certainly what did happen but we'll have to reflect on that as time goes on."
McLeod left SCF about 10 months ago and reportedly since settled a $15 million loan from the company.
According to the Companies Office, McLeod still owns a stake in SCF. He owns about 10 per cent of Southbury Group, the company that owns nearly 80 per cent of SCF.
McLeod described the impact on staff and investors and wider community surrounding SCF as "bloody awful".
http://www.stuff.co.nz/timaru-herald...supporters-say
Oh Lachie, give us all a break. We all work hard!!!
Yeah Lachie go back to the shelter. You sure wrote a lot of business. Just shows what an ex trading bank manager is like when he is let out of his cage.
It seems that all shareholders in the likes of Feltex and Cadmus needed was a decent Facebook page and a bit of potty raving about the injustice of it all.
And the government apparently wants to reduce the punters glee for property investment...how about starting by not bailing out a property development finance company.!
A fair scent of megalomania wafting up from down Timaru way....
So how many NZ finance company's is it now that have gone toes up due to bad property loans ?.
miner
63 now
see http://www.interest.co.nz/saving/deep-freeze-list/
Risky Loans Followed Guarantee
South Canterbury Finance ramped up its risky real estate loans after it signed up to the Government's scheme that protected its investors' money, the company's chief executive Sandy Maier said last night.
See the full article here...
http://www.nzherald.co.nz/business/n...ectid=10670285
Ok, lets start to build a list of what the property loan and bad toxic book looks like based on the info that is out there.
Would our Wellington mate Terry S be in the good books or the bad book.
Lending borrowed money to your property development mates was a logical respose to the Govt. Guarantee.
If the speculative development was sold before the end of the boom cycle everyone made a lot of money without having to risk any of their own capital.
If it failed then only the taxpayer loses. And the holders of SCFHA.