Banks put own men into Securitibank

Press, 18 December 1976, Page 6

Banks put own men into Securitibank

PA Wellington Two Auckland accountants have been appointed receivers of Securitibank, Ltd, on behalf of the A.N.Z. Banking Group, the Bank of New Zealand, and the Bank of New South Wales. The Bank of New South Wales chief manager. Mr T. A. Schulte, said vesterdav that Mr J. R. Michaels and Mr G. C. Goodare, of the Auckland firm of Hutchison. Hull, and Company, had been appointed. The notices of appointment were delivered vesterdav afternoon. Mr Schulte said that the banks had taken the move to “crystallise” the position regarding the debenture thev jointly hold over Securitibank, Ltd. “It is not likelv to have any great over-all effect,” Mr Schulte said. The receivers would also establish what assets were

available as security for the money lent to Securitibank bv the three banks. Mr Schulte emphasised that Securitibank was onlv one of a number of related companies under provisional liquidation. “Securitibank. Ltd. is not really the major trading company." Mr Schulte said. The banks’ joint debenture. under which anv claims would rank equallv, was not a significant amount compared with the total amount involved in the provisional liquidation of the Securitibank affiliates. The exact amount of money involved could not be determined for some time, Mr Schulte said. “It is really quite minor,” he said. Mr Schulte said he believed the receivers might have difficult 1 .- acting under the terms of provisional liquidation.

The Government should take immediate steps to resolve the uncertainties that were developing over the Securitibank affair, said the Opposition spokesman on Justice, Dr A. M. Finlay (Henderson) yesterday. The amount of money involved had been variously estimated but was clearlv very large and a tangle of interconnected legal relationships was emerging, he said.

Dr Finlay said it appeared that some companies retained their full legal status though there were significant reports that thev had ceased trading. Some might be, or be about to be, in receivership, some in provisional liquidation and some subject to both of these disabilities.

“No wonder the creditors, depositors, borrowers, and the public generally are confused and concerned.