Yep - that's all quite obvious, but can you tell me what provision(s) in the guarantee scheme mean that bond holders get covered?
Thanks,
Alan.
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Covered under G'tee doc in 1.1 Definitions "Creditor means any person to whom the Principal Debtor (SCF -I added this) has an obligation to pay money (whether present or future) under Debt Security"
Captures all bonds if SCF fails within the g'tee period as time issue of debt becomes irrelevant if a default is triggered.
See Treasury site
Hope this helps
Does this help? The SCF deed covered Debt Securities as defined by the securities Act which says:
debt security means any interest in or right to be paid money that is, or is to be, deposited with, lent to, or otherwise owing by, any person (whether or not the interest or right is secured by a charge over any property); and includes—
(a) a debenture, debenture stock, bond, note, certificate of deposit, and convertible note; and
(b) an interest or right that is declared by regulations to be a debt security for the purposes of this Act; and
(c) a renewal or variation of the terms or conditions of any such interest or right or of a security referred to in paragraph (a) or paragraph (b) of this definition;—
but does not include—
(d) an interest in a contributory mortgage where the interest is offered by a contributory mortgage broker; or
(e) any such interest or right or a security referred to in paragraph (a) or paragraph (c) of this definition that is declared by regulations not to be a debt security for the purposes of this Act:
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.