South Canterbury Finance has appointed four executives to help run the company beyond the extended government guarantee set to expire at the end of next year.
South Canterbury Finance, which is restructuring itself into a 'good bank', a 'bad bank' and an investment portfolio, appointed the executives to run the different parts over the coming years and to audit the entire operation.
Chief Executive Officer Sandy Maier said the appointments would help develop the core lending business, establish monitoring systems and maximize the value of South Canterbury Finance's property and investment assets.South Canterbury is looking for a new investor and to raise cash by selling its portfolio of assets and 'bad loans' inside its 'bad bank' of delinquent property loans.
It is widely thought to need a NZ$180 million injection of cash as equity before a waiver to its current trust deed expires at the end of August. The placement of South Canterbury's owner Allan Hubbard into statutory management has complicated the hunt for a new owner.
Dean Clark has has been appointed General Manager of South Canterbury Finance, the “good bank”.
Clark spent the last 22 years with Rabobank, with his last role as the Sydney based General Manager, Head of Business Banking.
“Dean's leadership, experience and understanding of the banking environment makes him an excellent choice to focus South Canterbury Finance on its core activity of providing finance for business expansion and development," Maier said.
Garry Sue, the former Head of Internal Audit for ASB, will take up the appointment of Head of Internal Audit for South Canterbury Finance to build new enterprise risk management, audit and monitoring systems.
Mike Coburn has been appointed as Senior Adviser to the Chief Executive specialising in real estate. Based in Queenstown and Dunedin, Coburn has a background in real estate and corporate governance as a professional director. He is a director of Dunedin City Holdings Limited and its subsidiaries including City Forests, City Bus, Aurora Energy and Delta Utility Services.
Des Hammond has been appointed as a Senior Advisor to the Chief Executive and will focus on the investment portfolio containing Helicopters NZ, and the Company’s holdings in Scales Corporation, South Island Dairy Farms, Dairy Holdings and other assets. He has been a restructuring specialist, most recently with KPMG and includes leadership roles in bank and finance company workouts and recovery.
He was appointed as Independent Director and approved by the Trustees of Hanover and United Finance to oversee the moratorium and subsequent sale of assets to Allied Farmers. Des was formerly chief executive of several NZ registered banks and is an Accredited Member of the Institute of Directors.
“These four appointments will complement the existing management team and create further efficiencies as the Company looks to maximise the value of its assets,” Maier said.
He added "excellent progress" was being made on asset recoveries by the Company, which accelerated through June to total over NZ$256 million since the start of 2010.
“This is a significant achievement and a very useful contribution to liquidity to meet our ongoing funding requirements,” he said.
"Negotiations are continuing with interested parties with regard to recapitalisation. Further announcements will be made at the appropriate time."