Signs were ‘all there’ in latest collapse

Capital + Merchant Finance, which owes 7000 investors about $190 million, yesterday became the 12th finance company to go bust in the past 18 months.

Like Rod Petricevic’s Bridgecorp, whose failure this year triggered a rash of further receiverships, Capital + Merchant was a specialist property lender and was particularly active in the Auckland market.

The country’s 13th largest finance company with assets of about $250 million, Capital + Merchant had a high profile because of its sponsorship of TVNZ news, and it is exactly the type of high-profile failure market commentators feared could derail a tentative recovery in debenture reinvestment rates.

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