27 Jun 2014

Court hears credit facility cancelled

1:01 pm on 27 June 2014

A High Court trial has heard that on the same day as a South Canterbury Finance prospectus was being altered to reflect its bank credit facilities, the Board decided to cancel an arrangement with one bank.

Former SCF chief executive Lachie McLeod, and former directors Robert White and Edward Sullivan are on trial at the High Court who face 18 fraud charges relating to the company's 2010 collapse.

The company's former chief financial officer, Graeme Brown, was giving evidence on Friday as a defence witness.

Under cross examination, Mr Brown said that on 31 March 2009 an extension was issued to a company prospectus to reflect that the company had $150 million of credit facilities from the Bank of New Zealand and the Commonwealth Bank of Australia.

Mr Brown told the court that on the same day he was instructed by the Board to terminate the $75 million facility with the Commonwealth Bank of Australia. He said this action was not reflected in the prospectus.

From left: Edward Sullivan, Robert White and Lachie McLeod.

From left: Edward Sullivan, Robert White and Lachie McLeod. Photo: Mytchall Bransgrove