SCF parents Southbury Corporation and Southbury Group owe the taxpayer about NZ$188.6m; Interest accruing

SCF parents Southbury Corporation and Southbury Group owe the taxpayer about NZ$188.6m; Interest accruing

 The in-receivership parents of South Canterbury Finance (SCF), which are fellow former Allan Hubbard controlled entities, owe SCF - and ultimately the taxpayer - a combined NZ$188.6 million.

The latest receiver's reports from McGrathNicol's Kerryn Downey and William Black show Southbury Group and Southbury Corporation owe SCF NZ$84.7 million and NZ$103.9 million, respectively, plus accruing interest.

The two companies were tipped into receivership last November on the heels of SCF's receivership last August. SCF collapsed into receivership on August 31 last year triggering a NZ$1.6 billion taxpayer funded payout to 35,000 of the company’s investors under the Crown retail deposit guarantee scheme.

In April the Government raised estimates for expected losses to the taxpayer from the Crown retail deposit guarantee scheme by NZ$331 million to about NZ$1.2 billion. About NZ$300 million worth of the increase was attributed to about 30 SCF related party loans with Downey telling interest.co.nz at the time that about NZ$160 million involved Southbury Corporation and Southbury Group.

Southbury Group owned 100% of Southbury Corporation, which in turn owned SCF. The receivers say the money owed to SCF was there at the date of their appointment (November 3 last year), remains outstanding and continues to accrue interest.

Downey and Black, who are also SCF's receivers, have previously said they collected NZ$238.7 million worth of loan book repayments, and received NZ$59 million in inter company loan repayments, in the six months from their appointment to SCF and February 28 this year.

See the Southbury Group receiver's report here and the Southbury Corporation one here.

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