Published 22 April 2009
Treasury gave notice on Monday that it’s withdrawing the Crown retail deposit guarantee from Viaduct Capital Ltd, headed by Nic Wevers.
The Treasury notice said it was withdrawing the guarantee for all new deposits because it “reasonably considers that the business or affairs of Viaduct are being, or are intended or likely to be, carried on in a manner which:
(i) may extend the effective benefit of the Crown guarantee to persons who are not intended to receive that benefit, and
(ii) is otherwise inconsistent with the intentions of the Crown in entering into the guarantee.
Eligible deposits up to the date of withdrawal continue to be covered. Deposits covered by the guarantee include the principal sum deposited, along with interest accruing in accordance with the terms of the deposit, up to $1 million/depositor.
Treasury said Viaduct hadn’t failed and there was no event of default under the guarantee triggering the claims process. The notice said Treasury wouldn’t comment further at this stage, “due to commercial & legal considerations”.
Mr Wevers bought Noel & Kent Gillman’s small Christchurch finance company, Priority Finance Ltd, in February, renamed it Viaduct Capital and opened under the new name in March, with the guarantee and the launch of a $50 million prospectus.
Mr Wevers worked at Marac Finance Ltd in the 1980s and took the Government Property Service to listing as Capital Properties Ltd. Since then, he was briefly chief executive at Blue Chip Financial Solutions Ltd, also briefly a director of NZX-listed Kermadec Property Fund Ltd, then set up a property management company.
Executive director Bruce McKay has experience in financial modelling, business & strategic analysis covering a number of industries, including senior finance roles in companies involved in finance, transport, manufacturing, media, technology & retailing. He’s a board member of the Institute of Finance Professionals NZ.
10 September 2004: Wevers out, Bryers takes over at Blue Chip
Attribution: Treasury release, story written by Bob Dey for the Bob Dey Property Report.