Dunedin-based St Kilda Finance has asked its trustee, Trustees Executors, to call in receivers BDO Spicers. St Kilda has NZ$6.9 million worth of deposits from 358 investors. St Kilda had been conducting a wind down of its business from late 2007, four and a half years after it commenced trading in 2003 as All Purpose Finance. "Due to increasingly adverse trading conditions in global and domestic financial markets directors commenced a managed wind down of the business from late 2007, and this has progressed well until recently when the global financial crisis really started to impact in New Zealand, and as the credit squeeze grew the value of land and building security has diminished," St Kilda Chairman John Farry said. Trustees Executors said: "In the face of deteriorating credit conditions (St Kilda) had cause to review the collect-ability of its loans, the result of which led the Directors of the Company to conclude receivership was in the best interests of the debenture depositors."
Stephen Tubbs and Colin Gower from BDO Spicers have been appointed as the receivers.