Hanover's FAI Finance unlikely to get government guarantee if guidelines are followed
12th Dec 08, 9:27am
Treasury's "questions and answers" on the government's retail deposit guarantee scheme makes clear that any finance company with the same directors as a finance company that has breached its trust deed is unlikely to get the guarantee. This would appear to rule out Hanover Finance's FAI Finance, which has Greg Muir and Mark Hotchin as its sole directors. Here's the key quote from Treasury: "Any "phoenix companies" that have all or most of the same directors who served with a company in moratorium that is still in moratorium, or a company wound up or in receivership, are unlikely to be eligible to sign the guarantee." Hanover Finance is now in moratorium and ineligible to participate in the scheme. A Treasury official declined to comment on the specifics of FAI Finance's application. * This article was first published yesterday in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.