South Canterbury Finance recovers $200 mill
South Canterbury Finance has recovered $202 million of outstanding loans since the start of the year and says its specialist asset management team is making good progress with non-core and non-performing debt.
Wednesday, May 19th 2010, 10:19PM
The funds realised are out of the $2.08 billion in assets the firm had at December 31 and are in addition to the normal repayment of performing loans that mature and are repaid on due date. South Canterbury is achieving the market values for impaired assets that was assumed when it took provisions in the six months ended December 31 and no significant further provisions for assets being sold are required, chief executive Sandy Maier said in a statement.
"The company has now cashed up approximately 10% of total assets since the beginning of the year," Maier said. Progress has been assisted by the forecast increased payout for Fonterra's dairy farmers.
"Ensuring sufficient liquidity in our business is our major challenge and focus and is one of our key metrics for management," he said.
The Timaru-based lender plans to split into three separate entities, one of which will take on all of the company's non-performing and impaired loans, as well as the majority of its $237.9 million net property loan book.
Another unit will hold all the firm's investments including Helicopters NZ, Scales Corp., Dairy Holdings, and South Island Farm Holdings, worth a combined $296.8 million. Any asset sales in the coming nine months to help meet maturing debenture repayments will come from this pool. The third unit will be its finance company operations.
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