The receivers of failed South Canterbury Finance cannot give any indication if unsecured creditors - possibly owed more than $8 million - will be paid.
Receiver McGrathNicol's first report, which gives a snapshot of accounts at August 31, indicates about 30% of the lending giant's loans may be impaired.
The extent of impaired loans, and how much the Government can claw back from asset sales, has been a point of conjecture since South Canterbury was placed in receivership.
Estimates have ranged from the Government's expectations of being $400 million to $600 million out of pocket through to $700 million by some analysts.
South Canterbury was unable to recapitalise itself and was placed in receivership on August 31, prompting the Government to pay investors $1.755 billion under the Crown deposit guarantee scheme, including $175 million to first-ranked creditors, such as the $100 million to George Kerr's Torchlight Fund.
While all investors, except preference shareholders, have been paid by the Crown, McGrathNicol will oversee the management and sale of 14 South Canterbury companies and assets, which include companies, such as Helicopters New Zealand and Scales Corporation, that are not in receivership.
McGrathNicol has resumed lending by some of the companies in receivership.
The receivers said yesterday they had omitted their estimates of the value of the assets, as that could "materially prejudice" their lawful duty to obtain the best price for them.
Total South Canterbury loan advances stood at $1.22 billion, comprising $690.8 million to businesses, $256 million in property, $179.6 million in rural lending, $68.6 million in consumer lending and $25.5 in plant and equipment lending.
Craigs Investment partners broker Peter McIntyre said the unaudited loan advances tallied up by McGrathNicol at $1.56 billion and the $446 million set aside as impaired loans meant about 30% of the loan book could be impaired.
Other financial analysts, who did not want to be named, said that of $14.9 million owed to creditors, about $6.5 million would be paid to preferential creditors, such as IRD and wages, leaving about $8.4 million outstanding, which was likely to be owed to unsecured general trade creditors.
"At this stage ... it is too early to assess with any degree of certainty the likely outcome with respect to the claims of unsecured creditors," McGrathNicol said.
Last month, McGrathNicol announced Deutsche Bank's New Zealand branch would be the sales adviser for South Canterbury's "good bank" assets, which include South Canterbury's branch network and subsidiaries FACE Finance and Southbury Insurance.
Goldman Sachs & Partners NZ were appointed to advise receivers on the sale of 100% of Helicopters New Zealand and much of Scales Corp.
Apart from the receivership, 13 companies associated with SCF founder Allan Hubbard are under statutory management and the Serious Fraud Office last month launched an investigation into several SCF loan transactions.
Mr Hubbard and his wife, Jean, are also under statutory management.
McGrathNicol said yesterday it was aware of concerns about the activities of the group before receivership and had notified "the appropriate authorities".
Preference shareholders, who paid about $100 million for $1 shares in 2006, got no Government pay-out, as the shares were not secured against assets.
McGrathNicol said yesterday the likelihood of recovery for them had not been determined.
