01 February 2013

NZ finance company collapses (2006–2012)

Since 2006, 51 New Zealand finance companies have either gone into liquidation or receivership, or frozen payments. Many New Zealanders lost their money.

The scale and circumstances of the sector gave rise to concerns of inappropriate behaviour and breaches of the Securities Act and a programme of investigations into the failures was initiated.

Below is the list of the failed finance companies.

No.	Company	Event	Date of event
1	Belgrave	Receivership	1/05/2008
2	Bridgecorp	Receivership	1/07/2007
3	Bridgecorp Investments	Liquidation	1/07/2007
4	Capital + Merchant	Liquidation	1/11/2007
5	Dominion Finance	Receivership	1/09/2008
6	Five Star Consumer Finance	Receivership	1/08/2007
7	Five Star Finance	Receivership	1/09/2007
8	Hanover Capital	Moratorium	1/07/2008
9	Lombard Finance	Receivership	1/04/2008
10	Nathans Finance	Receivership	1/08/2007
11	National Finance	Receivership	1/05/2006
12	North South Finance	Moratorium	1/12/2008
13	South Canterbury Finance	Receivership	1/08/2010
14	United Finance	Moratorium	1/07/2008
15	OPI Pacific Finance	Moratorium	1/03/2008
16	Mutual Finance	Receivership	1/07/2010
17	Viaduct Capital	Receivership	1/05/2010

Referred to another regulator, concluded with another enforcement option or closed

No.	Company	Event	Date of event	Status
18	Allied Nationwide Finance	Receivership	August 2010	Closed, warning letter issued to directors
19	Antares	Liquidation	May 2008	Referred to another regulator *#
20	Equitable Mortgages	Receivership	November 2010	Closed ##
21	Irongate Property Limited	Receivership	May 2011	Closed ##
22	Provincial Finance	Receivership	May 2006	Referred to another regulator *
23	Western Bay Finance	Receivership	August 2006	Referred to another regulator *
24	Finance & Investments	Receivership	September 2007	Concluded (enforceable undertakings) ##
25	Beneficial Finance	Moratorium	October 2007	Closed ##
26	Capital & Merchant Investments	Receivership	November 2007	Closed ##
27	Chancery Finance	Liquidation	November 2008	Closed ##
28	Compass Capital	Receivership	June 2009	Closed ##
29	Cymbis/Fairview	Receivership	May 2008	Closed ##
30	Dorchester Finance	Moratorium	June 2008	Closed ##
31	LDC Finance	Receivership	September 2007	Closed ##
32	Numeria Finance	Receivership	December 2007	Closed ##
33	Orange Finance	Moratorium	August 2008	Closed ##
34	Aorangi Securities (including Hubbard Management Funds)	Complaint	June 2010	Referred to another regulator**
35	Rockforte Finance	Receivership	May 2010	Referred to another regulator**##
36	Waipawa Finance	Liquidation	August 2008	Referred to another regulator**
37	QED	Liquidation	March 2008	Referred to another regulator*
38	Fendal Finance	Complaint	March 2009	Referred to another regulator*
39	Clegg & Co	Receivership	October 2007	Referred to another regulator*
40	All Purpose Finance (trading as St Kilda)	Receivership	November 2008	Closed##
41	Direct Property St Laurence Investments (No.6) (part of St Laurence Group)	Moratorium	June 2008	Closed##
42	Finance & Leasing	Receivership	January 2011	Closed##
43	Geneva Finance	Moratorium	October 2007	Closed##
45	Mascot Finance	Receivership	March 2009	Closed##
46	Strata Finance	Receivership	April 2009	Closed##
47	Kiwi Finance	Receivership	April 2008	Completed December 2011, with repayment of investors.
48	Boston Finance	Moratorium	March 2008	Closed October 2012 ##
49	Structured Finance (NZ)	Moratorium	May 2009	Closed October 2012 ##
50	Vision Securities	Receivership	April 2010	Closed October 2012 ##
51	Propertyfinance Securities	Receivership	August 2007	Closed October 2012 ##
52	Strategic Finance (including Strategic Nominees)	Moratorium	August 2008	The investigation concluded in February 2013.
53	St Laurence	Moratorium	June 2008	Investigation complete. Warning letter issued to Directors.
54	South Canterbury Finance Limited	Receivership	June 2010	Criminal investigation closed in 2011.

*	National Enforcement Unit of the Ministry of Economic Development
**	Serious Fraud Office
#	Relates to Five Star prosecution
##	On the basis of information we currently have, we will continue to include these issuers within its general surveillance. Our decision can and will be reviewed, and our investigation may be reopened, if new information comes to light.