By Jeff Hampton
Investors in failed South Canterbury Finance can expect the $1.7 billion pay-out from the Government guarantee in the next four to six weeks.
Controversy is continuing about the pay-out and also about how the once-trusted company lost so much money.
SCF sank money and lost it in one of Auckland's swishest hotels.
It also lent money on lavish waterfront bar developments – almost $2 million went west with previous owners there, Christchurch's SOH Hotel also cost them big bucks.
Now Allan Hubbard supporters are saying the problems got worse when he was being treated for cancer, and failed in his efforts to rein in management spending up large in industries and areas the company had little expertise in.
The finger is been pointed at Lachie McLeod, the company's chief executive until November last year.
Mr McLeod didn't want to respond, texting 3 News to say:
"...I do appreciate your calls. I want to continue to remain professional. I am sorry I am not in a position to comment at this time."
But South Canterbury shareholders have plenty to say, unlike investors they won't get paid any of the $1.7 billion government bailout.
“I feel a bit betrayed by the financial adviser, they just wrote me a letter and said you'd probably hear from the receivers, but they've just walked away from it,” says shareholder Lindsay Rackley.
Another downside is a likely slump in dairy farm prices as South Canterbury clients who borrowed too much are forced to sell.
Sales of other types of property in Canterbury may boom as the wall of money is paid out to investors.
“Just under a billion dollars is going to come into our economy over that period; think it's going to be great because there's been so much uncertainty,” says Jill Quaid of the First National Group.
The trustee expects to pay out all investors in the next four to six weeks; in the meantime the $1.7 billion is sitting in a Crown bank account earning a cool $140,000 in interest a day.
3 News