As recently as the end of April directors of Elderslie Finance Corp were willing to certify to the financial health of their 51-year-old company.Then directors James Garrett and Andrew Vaughan signed off on a March 2008 quarterly return received by ASIC on 30 April, which included the standard declaration that "There are no matters which may materially prejudice the security interest of the stockholders".Garret, the chief executive (and who remains with the firm) resigned as a director early last week. Vaughan stepped aside as a director in mid May.John Hewson quit as chair of the board of the finance company last week. Hewson, a former leader of the Liberal Party, had been used to raise the profile of the firm around the market and in the media.Financial results for Elderslie have been mixed, however. In the half year to December 2006 Elderslie reported a $2.6 million loss, and then reported a full-year profit of $4.1 million in the year to June 2007.Then in the half year to December 2007 Elderslie reported a further loss of $3.2 million.The most recent half-yearly loss was heavily impacted by the obscure line labelled "other expenses", which almost doubled to $9.7 million, with revenue declining a few per cent to $43.4 million.Finance costs increased eight per cent to $17 million over the corresponding period, with employee expense and the depreciation and amortisation expense both falling around a quarter to $3.6 million and $17.3 million respectively. The income tax benefit increased fifty per cent to one million dollars.Total equity ending the half year was $31.8 million, after a $1.1 million dividend payable to A Class share holders, compared to $31 million a year before.The December 2007 half-year financial statements show Elderslie had $440 million in assets and $387 million in loans and borrowings.Six months earlier these liabilities comprised $231 million in secured loans, $161 million in debentures and $30 million in unsecured notes.In an interview with The Sheet in late April and published April 28, Garrett said the debenture market had been more difficult to issue in, but, "The banks have extended their facilities for us, which has been very good."It's gone up (the cost of funding), but our market is not that price sensitive so we have been able to pass on the higher cost of funds."Because the banks don't provide any operating lease products per se, they are not subsidising that product with cheap cost of funds, so that is where we, quite happily, are insulated by bank behaviour as we can pass it (higher funding costs) on."The December financials didn't point to the current troubles, stating, "On the information available and with the planned assets sales and refinancing, the directors believe there are reasonable grounds to believe that the company will be able to generate sufficient funds to pay its debts as and when they become payable".Given the scant information it's unclear in which ways the Elderslie business has soured (at least in the eyes of the trustee).