LAWFUEL – The Legal Newswire – The finance company was thrown into further turmoil today when Five Star Consumer Finance was revealed as the the seventh finance company in 18 months to be put into receivership, the NZ Herald reports.
The finance company was thrown into further turmoil today when Five Star Consumer Finance was revealed as the the seventh finance company in 18 months to be put into receivership.
It was the third finance company to collapse in just over a week following the appointment of receivers for Property Finance Group and Nathans Finance.
NZAX-listed Property Finance yesterday was put into receivership with debenture debts of over $80 million and loans of over $630m.
Last night Brendan Gibson of receivers Ferrier Hodgson said it was too early to confirm Property Finance’s claims debenture holders would get all they had lent.
Five Star was incorporated in 1988 and is a wholly owned subsidiary of Antares Finance Holdings Ltd, owned by North Island shareholders.
It is the 41st ranked finance company by size according to a New Zealand Herald survey this week. Its trustee is Covenant Trustee Co Ltd.
Covenant managing director Graham Miller advised that the board of directors of Five Star had requested Covenant to appoint receivers to Five Star and its subsidiaries.
