OMG - Who's had a good look at Bernard Hickey's letter to Alan Hubbard today !! What a ripper !! see www.interest.co.nz
Printable View
OMG - Who's had a good look at Bernard Hickey's letter to Alan Hubbard today !! What a ripper !! see www.interest.co.nz
Why should AH say sorry to investors - they did really well. Got their cash bask as well as 8.5% plus htey leap frog all the other Finance company loosers who are well down the queue for getting their loot back.
Why should he say sorry to the Pref holders. The writing has been on the wall for a long time - they should have got out when the going was good. Risk vs return and all - they got what they expected.
AH never created the boom - he might have helped fund it but he didn't create it.
Blah blah - typical Hickey dross!
Perhaps something we can debate next week when I have some more time, Minimoke.
The bottom line is all the problems in SCF sheet home to the owner and you allready know how little I think of how the company has been "managed" if that's the right word for it over the last few years.
I've heard often on squawkback radio about what the govt. has done for the Sth. Island by bailing out these 'wealthy investors'; and just now from an Auckland hospital patient on TV who seemed to think the gummint has just tipped a bucketfull of money into the Sth Island - presumably she feels hard done by because they won't throw money at the hospitals to end the strike. So the question is - where did the depositors' come from. We know a few million came from overseas, but who the hell said the depositors are all Sth. Islanders?
Somebody mentioned McDunks tea lady theory .... with SCF we should have listened to this conversation down at the local Warehouse Stationery ...... esp as we know Jean do the ledgers by hand ....... one assistant to another "Gee that Mrs Hubbard has been buying a lot of red ink lately"
At the end of the day it was greed and incompetence that brought about the demise of SCF and probably the whole Hubbard empire.
The life story of Alan Hubbard is remarkably like that of Warren Buffett ... the frugal good guy who makes heaps of money and gives most of it away etc.
Just in case Warren falls into the same trap that Alan did I have emailed Warren asking him to spend a few minutes researching and reflecting on Alan's demise .... so he can avoid this happening to him.
However i have a feeling that Warren has more trusted friends and advisors to keep him on the straight and narrow .... and too proud and stubborn to listen to them
Last word to the ever-perceptive Chris Lee with his thoroughly insightful views of the finance company sector :
http://www.chrislee.co.nz/index.php?...mber&year=2009
Excerpt : "I repeat my often-stated opinion.
NZ needs a non-bank finance sector, it needs SCF and it needs people like Allan Hubbard."
I think more people want a last word Balance....
Paul Holmes - who we recently discussed quite a lot hahah - has this to say
"He doesn't fool me, that old boy. I look at those eyes and I see the shrewdest eyes I ever saw. Anyway, the bloke's not right all round. Anyone who makes hundreds of millions and still drives a silly old Volkswagen and lives in a shoebox is not right"
For general information taken from TRUSTEE EXECUTORS WEBSITE REGARDING WHAT HAPPEN NEXT FOR PEOPLE
South Canterbury Finance (SCF) – Frequently asked Questions
1. What happens now to the investments people had with SCF?
South Canterbury Finance is part of the Crown Retail Deposit Guarantee Scheme. To
facilitate repayment, the trustee has entered into an agreement with Treasury whereby
all debenture, deposit and bond holders that are covered under South Canterbury
Finance's Trust Deed arrangements with the trustee will be paid their full entitlement to
principal and interest up until 31 August 2010, (and an additional 3% interest (OCR)
from 1 September 2010 until the date payment is made) regardless of their eligibility
under the Crown Retail Deposit Guarantee Scheme.
This arrangement does not extend to other creditors, nor does it apply to holders of the
Preference Shares issued by the company.
2. What should people with SCF investments do now?
At this point, there is nothing that debenture, deposit and bond holders need to do.
Everyone will receive written advice of payment once the payment dates are confirmed.
There is an audit process underway to validate the investor register. While it is difficult
to put a precise timeframe around repayment because of the audit process, the trustee
is working towards full repayment in about 4-6 weeks.
3. Is everything guaranteed? Will all investors get all their money back?
South Canterbury Finance is part of the Crown Retail Deposit Guarantee Scheme.
The trustee has entered into an agreement with Treasury whereby all debenture,
deposit and bond holders that are covered by the company’s Trust Deed arrangements
with the trustee will be paid their entitlement to principal and interest up to the date of
receivership, regardless of their eligibility under the Crown Retail Deposit Guarantee
Scheme.
It’s important to note that interest will accrue between the appointment of the receivers
and full payout to investors. It is set at the Official Cash Rate (presently 3%) and will
also be paid to investors.
This arrangement does not extend to other creditors, nor does it apply to holders of the
Preference Shares issued by the company.
More details about the Crown Retail Deposit Guarantee Scheme can be found on
Treasury’s website:
http://www.treasury.govt.nz/economy/...outhcanterbury
4. What’s the process for this early payment that’s been mentioned? How will it all
work?
Once the receivers were appointed, Treasury made an immediate payment to the
Trustee, who received it on behalf of the debenture, deposit and bond holders who are
covered under the Trust Deed. This payment was for the principal and interest entitled
to those investors.
The Trustee immediately placed the money ‘on deposit’ back with the Crown. This
means that some interest – at the official cash rate of presently 3% - will be also
payable from the date of receivership to the date of payment.
The Trustee is now working with the Crown to promptly repay all debenture, deposit and
bond holders on the register as soon as an up-to-date register is available.
While it is difficult to put a precise timeframe around it because of the audit process that
needs to happen first, we are working towards full repayment in about 4-6 weeks.
5. Is the money safe?
Yes. Once Trustees Executors received the money from the Crown on behalf of the
debenture, deposit and bond holders who are covered under the Trust Deed, it
immediately placed the money ‘on deposit’ back with the Crown.
As additional information is available, Trustees Executors will post updates here on its
website.
2 September 2010
Chris Lee has had the last word in his weekly publication yesterday.
He was extremly critical of a hige range of matters, many of which I have eluded too at some length previously. There's much more besides but unfortunatly I am not allowed to cut and paste the article but believe me it was a real ripper !!