Peat - that might have some relevance if AH was at the helm. I think we can trust Sandy to have done the right thing
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uh-huh
also, I'm thinking Key wouldnt have re-iterated the guarantee y'day if they were intending to use an out clause .....
Note that the blogger deliberately left out the next clause:
i.e. if the guarantee is withdrawn from the institution, existing deposits remain covered.Quote:
3.11 Are my deposits still covered if the Crown guarantee is changed or withdrawn?
Updated 30 Jul 2010
Eligible deposits made with an institution approved for the Crown guarantee continue to be covered after any withdrawal of a guarantee until the earlier of the date they become due and payable and the expiry of the guarantee. New deposits made after withdrawal of a Crown guarantee are not covered. Roll-overs of deposits or investments occurring after the date of withdrawal are deemed to be new deposits and therefore will not be covered in the event they are rolled over.
If the deposit-taking institution was approved for the original and/or revised Deeds of Guarantee for the scheme that ends on 12 October 2010 but not for the extension scheme that ends on 31 December 2011, then deposits with that institution are guaranteed until 12 October 2010, unless the deposits become due and payable earlier. In the event of a default on or before 12 October 2010, the terms of the original or revised Deeds of Guarantee (as appropriate based on the date the investment was made) would apply and the deposits existing as at the date of default would be covered, including any deposits that were not due to mature until after 12 October 2010. In the event of a default after expiry of the original scheme on 12 October 2010, no guarantee would apply.
If the deposit-taking institution was approved for the extension Deed of Guarantee for the scheme that ends on 31 December 2011, then deposits with that institution are guaranteed until 31 December 2011, unless the deposits become due and payable earlier. In the event of a default on or before 12 October 2010, the terms of the original or revised Deeds of Guarantee (as appropriate based on the date the investment was made) for the scheme that ends on 12 October 2010 would apply. In the event of a default after 12 October 2010, the terms of the extension Deeds of Guarantee for the scheme that ends on 31 December 2011 would apply.
No surprise - receivership!
Anyone think there might be a significant sweetener offered as an option for existing debenture holders to accept a replacement debenture without govt guarantee from a new owner/recapitalised good bank?
NZX Announcement
South Canterbury Finance Limited announced today that it has been unable to complete a recapitalisation and restructure. As a result, the Company would have been unable to certify to Trustees Executors Limited, in accordance with the terms of its debenture trust deed with Trustees Executors Limited, that it was compliant with various financial covenants under the debenture trust deed for the financial year ended 30 June 2010.
Accordingly, South Canterbury Finance Limited has requested Trustees Executors Limited to appoint a receiver in respect of the whole of its undertaking and assets, and Trustees Executors Limited has done so. A further announcement will be made by the Company in due course.
So the "good news" is that depositors will get their money back. Lets see how long that process will take. Lets be grateful for a Deposit Guarantee scheme that enable these people to be paid a premium of 8.5% for backing something destined to fail. Blood useless scheme!
How are you faring Enumerate. Hopefully your exposure wasn't too great.
I did my absolute best to try and warn everyone on this blog that receivership was coming. Just have a look at all my previous posts.
Enumerate, you wouldn't be told mate and unfortunatly you'll have to take the haircut like a man.
Its high time to accept that AH mismanaged his affairs since the GFC began. Lachie McLeod also horribly mismanaged the comnpany while he was in charge and unfortunatly the Titanic was too far gone allready when Sandy Maier took the helm.
jeez ... didn't even go down to the wire ..... theres still 16 hours left today
Trading in all SCF securities suspended indefinitly by the NZX.