The details of a $25 million loan, key to the Crown's fraud case against three former South Canterbury Finance directors, are being hammered out for a second day at the High Court in Timaru.
The directors, Lachie McLeod, Edward Sullivan and Robert White are defending 18 charges brought about by the Serious Fraud Office following the 2010 collapse of the company, which cost the tax-payer $1.7 billion because it was covered by the Retail Deposit Guarantee Scheme.
Central to the Crown case is a $25 million loan made to a subsidiary of South Canterbury Finance, the Hyatt Hotel group.
The Crown says this was an undisclosed related party loan.
Under cross examination, forensic accountant Bradley Porter told defence lawyer Marc Corlett the company that owned South Canterbury Finance, Southbury Group, was the company that advanced the money.
Mr Corlett said South Canterbury Finance did not declare the loan in its prospectus because it had come from Southbury.
