Taxpayers bail out another finance company

Rockforte Finance the minnow finance company caught up in last year's liquidation of the Jeans Jones retail chain, has become the fourth lender guaranteed by the government to fail.  

Katherine Kenealy and Dennis Parsons of Indepth Forensic have been appointed receivers of the Gisborne-based lender, which owes some 70 investors about $3.2 million.

The Treasury confirmed all eligible depositors are covered by the government's guarantee.  However, all new deposits or any rolled over after Dec. 31 fell outside the scheme because Rockforte didn't sign the replacement guarantee deed at the end of last year.

"The Crown stands fully behind its guarantee commitments, and we expect an orderly process of payment to eligible Rockforte Finance depositors," said Brian McCulloch, Treasury's director of financial operations in a statement.