Never mind the cow cockies - South Canterbury Finance (SCF) and Allan Hubbard's woes were aggravated by glitzy property investments, including a number in upmarket Auckland bars and nightclubs.
New information shows Auckland's nightlife cost the failed finance company about $1.5 million.
While the financier traded strongly on its South Island links and stressed the parsimonious lifestyle of owner Allan Hubbard, it was a big Auckland lender and helped create venues for the city's after-dark revellers.
It funded chunks of the city's hospitality sector, pouring money into real estate created for party-going Princes Wharf and Vulcan Lane bar devotees.
Three Princes Wharf bars at the bottom of Quay St and a themed Vulcan Bar cost South Canterbury Finance money.
The Russian-themed Lenin Bar, chilly Minus 5 and Dakota Bar on the wharf and O'Carrolls Irish Bar in stylish Vulcan Lane got $1.9 million from South Canterbury.
But when the bar-owning companies hit hard times in the recession and entered receivership, accountants BDO stepped in and eventually sold all four bars as "going concerns".
South Canterbury got only $433,000 back of an almost $2 million loan on the businesses.
Auckland's Hyatt has also been confirmed as another recipient of South Canterbury's cash. SCF chief executive Sandy Maier said on Tuesday the company increased risky real estate loans after it had entered the Government's scheme that protected investors' money.
One of SCF's largest exposures was to a Marlborough vineyard venture by Auckland developer Greg Olliver.
Leefield Vineyards (in receivership) owed two lenders $50 million: SCF's $17 million second mortgage and Commonwealth Bank of Australia's $33 million first mortgage, receivers Michael Stiassny and Brendon Gibson said.
However, SCF's main tombstones are in the South Island, stretching from Marlborough to Wanaka, where former chief executive Lachie McLeod was prolific with mainly retirees' money on a string of high-risk ventures.
Speculation continues as to the potential buyers of SCF's assets with Mr Maier spotted on Tuesday by a New Zealand Herald source on an Air New Zealand flight leafing through a document identified as an "agreement for sale and purchase to sell South Canterbury Finance Ltd to Permanent Investments Ltd".
Duncan Saville, a former protege of New Zealand's foremost corporate raider, Sir Ron Brierley, was said to be one of the three parties shortlisted as potential buyers of South Canterbury before it went into receivership and is associated with the directors of Permanent Investments.
Mr Maier yesterday declined to discuss the document, saying he was bound by confidentiality agreements with three potential bidders with whom he had been negotiating before SCF was placed in receivership.
South Island rich-lister George Kerr yesterday confirmed he was interested in buying at least some of South Canterbury's better assets.
