Receiver upbeat on helicopters NZ sale

Strong bidding interest from overseas and New Zealand for South Canterbury Finance asset Helicopters NZ has receiver Kerryn Downey optimistic of a $90 million-plus sale within three months.

Indicative bids for the Nelson company, up for sale as part of SCF's receivership process, closed last week.

Mr Downey, of McGrathNicol, said several bids had come in from local and overseas parties, including New Zealand and international helicopter operators, and he was expecting a report from Goldman Sachs, which is helping with the sale, early this week.

Helicopters NZ was ascribed a face value of $90.3m last year when it was transferred to SCF from the Allan Hubbard-controlled Southbury Corporation.

"I am reasonably certain that number, if not higher, will be the sale price," Mr Downey said. "I am very upbeat about Helicopters. Its operating performance is ahead of budget which is extremely encouraging."

He hoped to conclude the sale by March or April. A

competitive sale process is good news for the taxpayer, after the Government paid out close to $2 billion to investors and financiers under the Retail Deposit Guarantee Scheme when SCF failed last year.

Mr Downey said it was "disappointing" the company had not received Civil Aviation Authority approval to continue with a key United States military contract in Laos and Cambodia.

But the prospects were good for resolving the problem over the company's air operating certificate sooner rather than later and the Southeast Asia contract was a small, though relatively important, part of the company's overall operations, he said.

The contract, which involved working with an arm of the US Department of Defence to recover remains of servicemen missing in action, was about 10 per cent of the company's business, he said. Its main operations were in New Zealand, Australia and Antarctica.

The CAA withdrew operational approval believing it did not have the jurisdiction to cover operations in Laos and Cambodia. And just before Christmas the High Court denied the company an order to continue its air operating certificate, pending an appeal.

Mr Downey said directors had still not decided whether to appeal against the CAA decision.

Indicative bids for SCF's 80 per cent shareholding in another valuable asset, Scales Corporation, close on January 28.

The company, which has cold store, petfood, property, bulk storage and shipping operations, and is the country's biggest apple grower, is itself not for sale – only the 80 per cent shareholding.

Mr Downey is also expecting a hotly contested sale for this stake in the business.

"It is a very highly performing business with rock solid profitability. There is significant interest. The competitiveness of the process and the level of interest suggest high values there."

- The Dominion Post