Finance Minister, Rt Hon Bill English announced late last month that the Government will set up a company to manage the remaining assets from 6 failed finance companies that were covered by the Crown Guarantee. The cost of setting up the company will be around $800,000 and it is intended that the company will be operational early in 2012.
The 6 finance companies are Allied Nationwide Finance, South Canterbury Finance, Vision Securities, Mascot Finance, Mutual Finance and Rockforte Finance. The Government is now the only remaining creditor of each of these 6 finance companies.
Mr English said that the receiverships of these companies have now reached a stage where easily marketable assets have been sold. One Crown company to manage the remaining assets of each company is expected to reduce administration costs by an estimated $13 million over 2 years.
No further information has been released since the press release on 27 October 2011. We will update you as further information is released.