New Zealand

New Zealand’s cabinet has assigned $24 million funding in the first year for the new Financial Markets Authority, which begins operation on 1 May, The National Business Review reported. The budget will increase to $28 million in 2013/14 to reflect the emphasis on market intelligence, investigation and enforcement, and some additional transition costs, Commerce Minister Simon Power said today. The budget for 2014/15 and beyond will be about $26 million – an increase of around 44 per cent over the $18 million budget for the current regulators.

The financial fate of struggling Auckland developer David Henderson hangs in the balance, after creditors voted for his repayment scheme yesterday, The New Zealand Herald reported. Bankruptcy proceedings before Associate Judge Doogue could go to the High Court at Auckland around 10am Tuesday but Daniel Grove, Henderson's barrister, said nothing was certain. Creditors agreed narrowly yesterday to Henderson's $1.5 million repayment of $127 million claims and now Grove will seek court approval of that scheme. "The creditors voting is only the first step.

Struggling Auckland developer David Stewart Henderson just won the right to repay creditors in a partial deal which sees him avoid bankruptcy, The New Zealand Herald reported. Attempts by other developers to strike compromise deals have failed but the ex-Victoria Parks Markets owner succeeded by just .6 per cent. The Princes Wharf developer has claims against him of about $105 million and is offering to repay a pitiful $1.5 million in tranches of about $500,000 gradually. An Australian bank, Inland Revenue and Downer Construction are all chasing him for long outstanding payments.

Allied Farmers, the finance company hobbled by the collapse in value of its loan book, may not be able to repay $7.5 million owed to its failed Allied Nationwide Finance unit when it comes due on July 1, The New Zealand Herald reported. Managing director Rob Alloway is seeking talks with the receivers of ANF about the potential default, which would be the third such event. The ANF receivers, Kerryn Downey and Andrew Grenfell of McGrath Nicol, have reserved their position and are considering options, according to Alloway's statement.

A possible bailout of AMI Insurance will see the Government pump up to $500 million of equity into the ailing insurer and hold the right to take control of the company. But the final cost could be double that, The National Business Review reported. Finance Minister Bill English announced the support package today saying it would only be called on as a last resort if the insurer's reserves were exhausted.

Three of the four NZ-registered companies associated with IT services company DataSouth have been placed in liquidation, The National Business Review reported. A fourth, DataSouth Finance is now subject to a Serious Fraud Office investigation, revealed by the agency late Friday. The investigation relates to lease deals with DataSouth Clients, bankrolled by South Canterbury Finance.

Princes Wharf developer David Henderson averted bankruptcy this morning to allow him and his creditors time to discuss another proposal that could stop Inland Revenue's application, The New Zealand Herald reported. High Court Associate Judge Jeremy Doogue adjourned IRD's application to bankrupt Henderson to April 19, to allow Henderson's creditors to vote on a new proposal. The meeting is expected to be held within the next 10 working days. IRD lawyer Nick Malarao said the commissioner opposed the adjournment, stating it was in public interest that Henderson be bankrupted.

Don Ha Real Estate, a Ray White Group franchise, has been placed in receivership. Don Ha is a former NBR Rich Lister and horse trader, The National Business Review reported. The extent of the company's financial woes will be revealed on May 20 in the first receiver's report. Ray White chief executive Carey Smith said receivers Grant Thornton had requested, and would receive, Ray White’s support in the receivership process.

The Serious Fraud Office has launched an investigation into failed insurance broker Herbert Insurance Group, which was placed in receivership this month, The New Zealand Herald reported. SFO Director, Adam Feeley, said the office was investigating concerns about an apparent shortfall in the group's account, which hold clients' premiums. Feeley said the SFO was working closely with receivers, Korda Mentha, to identify all information relevant to the investigation. Herbert Insurance Group's client base of about 4000 has been sold to Aon New Zealand.

Ferrier Hodgson, voluntary administrators for Whitcoulls' parent, REDgroup, yesterday sought High Court approval to extend the time available to consider its options, The New Zealand Herald reported. Under the voluntary administration rules, a so-called "watershed" meeting, where creditors are advised of the state of play with the company, needs to be held five weeks after the appointment of a voluntary administrator, which would have made it March 24.