Receivers appointed for Strategic Finance Limited

12 March, 2010

PricewaterhouseCoopers partners John Fisk and Colin McCloy have today been appointed receivers of Strategic Finance Limited (SFL) and related companies Strategic Advisory Limited, Strategic Mortgages Limited, Strategic Nominees Limited, and Strategic Nominees Australia Limited. This ends the moratorium arrangement that has been in place since December 2008.

The companies' trustee, Perpetual Trust Limited, appointed receivers after SFL failed to generate sufficient loan recoveries for its milestone payment on 7 January, 2010. In January, SFL also announced its total loan book value (net of provisioning) had fallen below 75% of the aggregate principal monies owed to debenture holders, depositors and subordinated note holders. Both of these were ”Review Events” under the moratorium terms.

Mr John Fisk today says: “We will be talking to key stakeholders over the next few days to determine the best way forward. As receivers of SFL, we understand the uncertainty the recent situation has caused to investors and believe the receivership will now provide greater certainty. It is too early to release any further details, but we are working as quickly as we can to determine the best option going forward to ensure maximised funds are distributed to investors.

“The receivership also brings certainty to unsecured creditors’ claims that were not subject to the moratorium and provides options to review cost structures that were not available to management under the moratorium.
We will provide a report to investors as soon as we possibly can. However, in the meantime we’ve set up a dedicated help line and web page to allow investors to ask questions and find out more information,” said Mr Fisk.

NOTES FOR EDITORS
All documentation for investors in the public domain relating to the Strategic Finance Limited receivership is available on PwC’s website www.pwc.com/nz/strategicfinance. A dedicated phone line has also been established for investor queries: (09) 355 8030.

For further information or media inquiries please contact:
Karine Fox
Head of Communications
PricewaterhouseCoopers
Ph (09) 355 8703 or (021) 820 378
Email: karine.l.fox@nz.pwc.com

About PricewaterhouseCoopers:
PricewaterhouseCoopers (www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
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