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Treasury soon to pay eligible Mutual Finance investors

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Sept 14 NZPA - Treasury is close to repaying investors in Mutual Finance who are eligible under the Crown retail deposit guarantee scheme, two months after the finance company was placed in receivership.

Mutual Finance, an Auckland-based finance company providing commercial and consumer loans, was placed in receivership in July after a technical breach of its trust deed.

About 200 depositors with around $8m in deposits are eligible under the government guarantee.

Treasury was waiting for auditor approval of an investor register provided by the receivers, confirming the information was able to be used to pay out under a different process introduced after the collapse of South Canterbury Finance.

Treasury now did not test investor eligibility in a claims process for payments, but did need to verify the investor information it had received from the receivers was correct, Treasury spokesman Angus Barclay told NZPA.

Eligible deposit figures have not been confirmed following the changes, but it was likely to be more than $8m, he said.

Mutual Finance trustee Covenant Trustees appointed Grant Graham and Brendon Gibson of KordaMentha as receivers to recover loans of $8.2m, two properties in New Plymouth and Cable Bay, a debtors' ledger of $396,000 and minor office furniture and equipment.

The receivers said today in their first report that they are unable to give an estimate of the return likely to be received from the assets.

They had already paid out $8000 in employee holiday entitlements.

Unsecured creditors owed about $161,000, and expected to increase, are unlikely to receive a return, receivers said.

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