The Government will establish a company to manage about $350 million worth of unsold assets of six failed finance companies that had Crown guarantees.
Nine finance companies were placed in receivership while being underwritten by the Retail Deposit Guarantee Scheme. In six cases the Crown is the sole creditor.
The six companies are South Canterbury Finance, Allied Nationwide Finance, Vision Securities, Mascot Finance, Mutual Finance and Rockforte Finance.
Finance Minister Bill English says the assets of all six that were easy to sell have been sold.
The new company, which the Government intends to have going by early next year, is expected to halve the costs of managing the sale of the remaining assets.
Mr English says the move will save $13 million over two years.
as each company has had its own receiver up until now.
He says the new company has cost about $800,000 to set up.
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