The receivers' first report on the demise of Dunedin-based St Kilda Finance is not due until next month and at least one investor is critical of the time taken to investigate the almost $7 million owed to investors.
On November 13, boutique St Kilda Finance, whose registered name is All Purpose Finance Ltd, was placed in the hands of receivers by its directors, with almost $7 million owed to 358 mainly southern investors.
While many receivers file first reports within a month, under the Receiverships Act 1993, a receiver has two months after appointment to collate a first report, which must then be filed to the Companies Office within seven days.
More time can be applied for through the courts.
At the weekend, a Central Otago-based investor, who asked not to be identified, contacted the Otago Daily Times and said neither the Christchurch-based receivers, BDO Spicers, nor St Kilda directors had communicated with investors since the November announcement.
"The shareholders and directors appear to have washed their hands of the whole sorry affair and are not prepared to put their hands in their well-lined pockets to make up the shortfall that depositors will no doubt incur."
BDO Spicers receiver Stephen Tubbs yesterday said an update was being mailed out to investors today, which was what investors were told at the time of appointment.
Other than confirm the first report was likely be be delivered by January 21, Mr Tubbs declined to comment on issues of accountability raised by investors.
The Central Otago investor at one point had more than $100,000 with St Kilda.
At the time of going into receivership, chairman Dunedin businessman John Farry said the company began winding down late last year, having earlier in August said St Kilda Finance had stopped taking investments as reinvestment levels plummeted from 65% to 15%.
Across the country, spooked investors were deserting finance companies in general amid several dozen companies falling into receivership or moratorium.
Mr Farry said last month that when the global financial crisis really started to impact in New Zealand and the credit squeeze grew, the value of land and building security diminished.
Yesterday, Mr Farry said receivers had found the financial affairs of St Kilda "very tidy in every respect".
They had retained two original staff to assist, and blamed the state of the finance markets in general for delaying any announcement.
"Selling up and refinancing [these loans] is practically impossible at present," Mr Farry said.
The office chattels of St Kilda Finance were auctioned last week in Dunedin and Mr Farry said one of St Kilda's largest loans had been "signed up" to another party, subject to due diligence.
"There is a need to assess, collectively, those various loans, in a very difficult market, which is what has taken time."
Mr Farry was unable to answer any questions about its financial state or any possible outcome for the investors.
