New Zealand finance company woes continue: eighth collapses

[Judi Lynn]

Source: Deutsche Presse-Agentur

New Zealand finance company woes continue: eighth collapses

Sep 4, 2007, 0:52 GMT


Wellington - Another New Zealand finance company collapsed on Tuesday - the fourth in 10 days - citing a run on withdrawals of money by investors with on-call deposits.

Directors of LDC Finance, of Nelson, asked to be placed into receivership, blaming the collapse of other finance companies for provoking 'an unsustainable level of demand for repayment of on call deposits.'

It was the eighth finance company to collapse in 16 months and analysts warned that more could go as frightened investors stopped the flow of money the firms need to maintain liquidity.
(snip)

Edwards said repayment of all deposits had been frozen but directors expected all investors would be repaid in full in time.



Read more: http://news.monstersandcritics.com/business/news/article_1351411.php/New_Zealand_finance_company_woes_continue_eighth_collapses

[truthisfreedom]

1. Four in ten days, and eight in 16 months?

On a graph, that's the kind of plot of points that makes a mathematician's eyes grow wide.

[seriousstan]

2. Hardly a major player..$23.8m. What is that..... 100 decent sized houses?

The company has 995 depositors and debenture holders owed $19.3 million. Its total finance assets are put at $23.8m.


It sounds more like a developer went under.

[TheMadMonk]

3. Scaled to the US population that would be a billion dollar fund. n/t