Finance firms in receivership

Press, 2 September 1986, Page 1

Finance firms in receivership

PA Auckland A.I.C. Corporation, Ltd, delisted from the New Zealand Stock Exchange after a $25 million management buy-out in April, has asked that four of its finance subsidiaries be placed in receivership and one in liquidation. The companies placed in receivership as a result of a request to National Mutual Life Nominees, Ltd, the trustees for investors, are A.I.C. Merchant Finance, Ltd, A.I.C. Retail Finance, Ltd, A.I.C. International Finance, Ltd, and Mercantile Finance Corporation, Ltd. Mr R. H. Worn, the chairman and chief executive of A.I.C. Corporation, said that the action had been taken to protect investors’ interests and freeze the affairs of the four subsidiaries pending clarification of accounting and legal issues which have resulted in liquidity difficulties.

was bought by the Auck-land-based Australasia Investment Company, Ltd. / International Harvester New Zealand became A.I.C. International. In April, 1985, the former International Harvester Credit Company, of New Zealand, Ltd, set up to finance machinery sales, was floated and listed on the stock exchange as A.I.C. Finance, Ltd. A.I.C. Finance later became A.I.C. Corporation. Mr Worn said the directors believed that sufficient assets existed in the companies concerned to satisfy the repayment of all funds invested by the public. The receivers are Messrs F. Watson and J. Tuck, both of Peat Marwick Mitchell and Company, chartered accountants, of Auckland. They will also act as provisional liquidators of A.I.C. Securities, Ltd.

As part of the arrangement, a further subsidiary, A.I.C. Securities, Ltd, has been placed in liquidation. The former Christ-church-based International Harvester Company of New Zealand, Ltd, was one of the foundation constituents of A.I.C. When International Harvester in the United States got into financial difficulties it sold off its overseas subsidiaries. The New Zealand company

Mr Watson said a creditors’ meeting would be held on September 12. The A.I.C. group comprises 22 companies, only five of which are affected by yesterday’s moves.

The main shareholder is Australasia Investment Company, Ltd, a company in which Kuwait Asia Bank EC has a 49.9 per cent interest. The other main shareholder is Fabre Nominees, Ltd, a private company owned and controlled by Mr Worn and his family.