Delay in Kearns

Press, 4 March 1989, Page 26

Delay in Kearns

The future of Kearns Corporation may not be known until Monday, when the directors provide the Stock Exchange with further information.

On Thursday, the two main trading subsidiaries of the listed Christchurch-based finance services group were put in receivership, leaving the position of the parent company uncertain. Ravlick Holdings, a company run by the State Bank of South Australia, had sent receivership notices to Action Finance and Leaseco Finance, the two Kearns subsidiaries, but the two companies sought an interim injunction restraining the orders. This was refused after a chambers hearing in the High Court on Thursday.

Ravlick held debentures over both companies. The State Bank of South Australia also has a $6,075 million first mortgage over commercial properties owned by Kearns. Kearns told the Stock Exchange in a statement yesterday that the receiverships was “a very serious matter” to Kearns, and its implications were being fully assessed.

A Kearns director, Mr John Anderson, told the Exchange that a further announcement could be expected within 24 hours. However, sources at Kearns said it was unlikely that any statement would be made before Monday. The receiverships are the latest blows to Kearns. Last week its 80 per cent-owned subsidiary, Prudential Building and Investment Society of Canterbury, was put into provisional liquidation.