New Zealand

More than $1 million in gold and silver bullion has been confiscated from a Hamilton house after English bankruptcy trustees successfully sought a search and seizure order through the New Zealand courts -- a first for a foreign insolvency case on these shores, Voxy reported. The bullion was allegedly hidden from creditors of retired English psychiatrist Alan Geraint Simpson, 68, who was adjudged bankrupt by the High Court of England and Wales in September last year. Steven John Williams was appointed as trustee of Mr Simpson's bankrupt estate in January.

Two more entities established by Allan Hubbard have been placed into statutory management, The New Zealand Herald reported. The Government yesterday put Hubbard Churcher Trust Management and Forresters Nominee Company into management after receiving a recommendation from the Securities Commission. Commerce Minister Simon Power said the decision to add the two companies was a result of the ongoing investigations by the statutory managers who reported their findings to the Securities Commission.

The receivers of South Canterbury Finance say they have received more than 150 inquiries from New Zealand and overseas investors expressing interest in acquiring assets, The National Business Review reported. Kerryn Downey and William Black, of advisory firm McGrathNicol, have invited leading investment banks to submit proposals for advising and assisting them in selling the group's assets. South Canterbury collapsed into receivership last month triggering a $1.6 billion payout to depositors under the Crown retail deposit guarantee scheme.

Allied Farmers has slashed its term debt with Westpac to just $1.65 million, The New Zealand Herald reported. The rural and financing company, which reported a year to June 30 loss of $77.6 million on Friday, yesterday said it had dropped its debt from $14.2 million in the last week following two settlements. Allied managing director Rob Alloway said the company was making good progress on reducing its debt and restructuring the business. Allied, which last December acquired the loan book of Hanover and United Finance, has been in talks with Westpac over its funding since June.

The former directors of the failed Five Star group appeared in court this morning on charges laid by the Serious Fraud Office, The National Business Review reported. Marcus Macdonald, Anthony Bowden, Nicholas Kirk and alleged “shadow director” Neill Williams will next appear at the Auckland District Court on October 28 for a post-committal hearing. The SFO has laid more than 100 charges under the Crimes Act against them over related party lending that took place between 2003 and 2007 involving loans worth $50 million, much of which is said to be irrecoverable.

The Treasury will begin paying out investors in failed Mutual Finance under the Crown guarantee two months after the company was placed in receivership, The National Business Review reported. Covenant Trustee appointed Grant Graham and Brendon Gibson of KordaMentha as Mutual Finance's receivers in July. Mutual owed 340 depositors $9.3 million. In a report released today, the receivers say they have verified the investor register, enabling the Treasury to begin its payout process. Mutual had a loan and asset book of $8.23 million at the time of receivership.

Feltex's liquidator, McDonald Vague, is pushing ahead with its court case against five former directors of the failed carpet maker, spurred on by admissions made in the case the five recently won against the Registrar of Companies, The New Zealand Herald reported. McDonald Vague director Iain McLennan said the Registrar of Companies case, including a district court trial, had been watched closely. ANZ, owed A$119.5 million, ran out of patience with the company's board and tipped Feltex into receivership on September 22, 2006 with McGrathNicol appointed receivers.

Just over half of Auckland's five-star Westin will be off-limits to guests after a fight between receivers and suite owners, The New Zealand Herald reported. Out-of-pocket investors fear receivers might disconnect electricity, phone, television and access to their rooms. Westin, the international hotel operator, will lose control of 110 of the 170 rooms at the Lighter Quay hotel. Graham Wilkinson, a hospitality expert representing owner/investors of 110 units, said his group was extremely disappointed.

Diversified industrial company Scales Corporation is unaffected by the receivership of its parent South Canterbury Finance (SCF), it said yesterday, The National Business Review reported. SCF was placed into receivership today after failing to strike a deal with new investors. Scales, which posted an unaudited $10.1m pretax operating profit for the year ending June 30, was one of the bright spots on SCF's books, along with Helicopters NZ and Dairy Holdings.

New Zealand's government has provided NZ$1.6 billion ($1.2 billion) to protect depositors of collapsed South Canterbury Finance and extended a loan of NZ$175 million to the group's receivers to pay off debt, it said on Tuesday, Reuters reported. Privately-owned South Canterbury, one of New Zealand's largest finance companies, announced on Tuesday it could not meet an end-of-the-day deadline to secure new capital and called in receivers.