10 Jul 2010

South Canterbury Finance recovers more debts

8:48 am on 10 July 2010

South Canterbury Finance has clawed back another $50 million in outstanding debts in the three months to June, as part of its efforts to strengthen its financial position.

At the end of March, the South Island lender had recovered $202 million, or about 10% of the company's total assets.

By the end of June, the total collected since the beginning of the year had reached $256 million.

South Canterbury Finance chief executive Sandy Maier says the money will be used to repay investors.

Meanwhile, the company has expanded its management team to help run its three operations - a finance unit holding good loans, another holding bad loans, and an investment division that includes Helicopters New Zealand the apple producer Scales.

Dean Clark, who has 22 years experience with Rabobank, will run its 'good bank', auditor Garry Sue will head South Canterbury's internal audit team, Mike Coburn will look after real estate and Des Hammond will focus on the investment portfolio.

The company says it's still in talks with potential investors about taking a stake in the troubled firm.

The owner of South Canterbury Finance, Allan Hubbard, had said he hoped to seal a deal with an overseas firm by the end of last month.