Guthrie case solved

Press, 10 February 1989, Page 18

Guthrie case solved

Investors in futures and unit trusts through Guthrie Financial Corporation should not be affected by the company’s receivership. Guthrie Financial Corporation was put into receivership on Wednesday evening at the request of the company’s directors, after the futures trading arm of the company, Guthrie Brokers, was ordered to stop trading by the New Zealand Futures Exchange. The receivership put a stop to attempts by the futures exchange to have open positions in futures contracts owned by clients of Guthrie Brokers transferred to other

futures traders, but the problem has now been solved. The exchange’s marketing manager, Mr Lincoln Gould, said the receivership froze the assets and cash balances of Guthrie Brokers. Because some futures contracts would have been in an unrealised loss position, cash would have to be transferred along with the contract, to cover any losses. However, yesterday the receivers, accountants Price Waterhouse, appointed the managing director of Guthrie Brokers, Mr Chris Cherrie, to trade the open futures contracts through other dealers.

The New Zealand Press Association reports that funds in the eight unit trusts managed by another Guthrie company, Guthrie Trust Group, should not be adversely affected by the receivership. The Unit Trust Association of New Zealand said all the trust investments were held in the name of the trustee, NZI Guardian Trust, or its nominee company. NZI had powers that could be invoked and was considering the options, a spokesman said.