Asia Pacific

Takefuji Corp., once the symbol of the era of rapid growth in consumer finance, filed for bankruptcy protection in late September under the Corporate Rehabilitation Law, Asahi.com reported in an editorial. Takefuji's failure is not the simple saga of the demise of a single company. It poses a big question to the entire consumer credit industry: How can the sector push through the reforms needed to carve out a viable future for itself? Takefuji collapsed under the crippling burden of refunding borrower claims of overpaid interest.

Shinsei Bank is expected to become the financial adviser for the search of an investor for failed consumer lender Takefuji Corp, three people with direct knowledge of the matter said, Reuters reported. Takefuji last month filed for bankruptcy owing about $5 billion, making it the biggest Japanese consumer lender to fail since a court ruling in 2006 forced the industry to repay borrowers for excessive interest charges. Shinsei Bank's appointment will become official pending court approval, one of the people said. Read more.

Two wealthy investors have handed Adelaide carbon management firm Carbon Planet a $250,000 lifeline to move the company out of voluntary administration, AdelaideNow.com.au reported. Carbon Planet mangement took control of the company back from Korda Mentha today after creditors unanimously agreed for the company to continue operating under a Deed of Company Arrangement. He said the company had reduced its cash burn rate to $140,000 a month as it moved from creating to deploying its intellectual property.

Chinese investors who have applied to buy the Crafar family's dairy farmers from receivers say they think the purchase will be allowed by regulators at the Overseas Investment Office, The National Business Review reported. Natural Dairy NZ Holdings Ltd has applied to buy the 80% it does not already own in UBNZ Assets Holdings Ltd as part of the planned purchase of 16 North Island farms owned by the Crafars and put into receivership 12 months ago, when debts topped $200 million. The 8615ha of dairy farms, mostly in the North Island, run about 25,000 dairy cattle.

Chinese Premier Wen Jiabao offered Greece a major vote of confidence on a visit to the debt-ridden European nation, saying China will continue to buy Greek bonds and announcing the creation of a $5 billion fund to help Greek shipping companies buy Chinese ships, The Wall Street Journal reported. The remarks represent some of China's most substantive support for the euro zone amid the region's debt troubles, and reflect the Asian giant's growing willingness to wield its economic clout to obtain wider international influence. Mr.

A High Court Judge has rejected embattled property developer Nigel McKenna’s last-ditch attempt to put a bankruptcy bid against him on hold, The National Business Review reported. Mr McKenna is under siege financially, with creditors from a number of troubled projects taking action to try to get their money back. Fletcher Construction, which Mr McKenna owes more than $800,000 from the construction of the Holiday Inn in Wellington, is trying to have him bankrupted. It filed a bankruptcy notice against him nearly a year ago, in November 2009.

Structured Finance, hurt by the failure of Auckland's Westin Hotel, convinced its trustee to hold off on receivership after a trust deed breach, buying time to squeeze more value from its loan book, Stuff.co.nz reported. The firm triggered a review event when total tangible assets fell below 80 per cent of aggregated repayments due, its accounts for the year ended March 31 show. Perpetual Trust, the trustee for holders of $33 million of debentures covered by a moratorium, has allowed Structured Finance to continue trading in the belief investors will get more back that way.

Allied Farmers’ auditor has been unable to verify the company’s financial statements and cannot form an opinion on its going concern status, The National Business Review reported. PricewaterhouseCoopers issued a heavily qualified opinion on Allied’s financial statements in the rural services and finance company’s annual report released to the market this morning. The auditor said there was insufficient evidence to verify whether the company would be able to generate sufficient cashflows from its funding initiatives to qualify a going concern assumption.

South Canterbury Finance (SCF) debenture and deposit holders will be paid in the middle of October, Trustees Executors, the trustee says, The Sydney Morning Herald reported. Receivers were appointed to SCF on August 31. The New Zealand Government decided to make full settlement under the terms of the retail deposit guarantee scheme on August 31 and the trustee has been holding the money on behalf of 35,000 investors since then. Bondholders were repaid on September 23. They represented about $NZ350 million ($A267.48 million) of the $1.6 billion owned to SCF secured investors.

Another Marlborough wine company is in receivership and one unsecured creditor has predicted it will be only a month before his company suffers the same fate, The Marlborough Express reported. Otuwhero Estate Wines, based in the Awatere Valley, was put into the management of Deloitte partner Grant Jarrold, of Christchurch, on Monday. Mr Jarrold said he was still assessing options for the company. Otuwhero operations director Michael Davison, of Clifford Bay near Blenheim, would not comment.