One of the seven remaining companies under the New Zealand government's extended guarantee scheme collapsed on Friday, leaving the government with the burden of repayment for which it had failed to make provision.Crown statements for the three-month period ended September made no provision for the cost of default under the deposit guarantee scheme.Equitable Mortgages announced it had asked its trustee to appoint a receiver as the company believed it is no longer a viable business. The company has suffered continued deterioration in its asset quality and while it has garnered new investments they were all confined to the duration of the Crown guarantee, which ends December 31, 2011.Compounding its problems are recent adverse events affecting  the finance company and commercial property sectors which have resulted in low levels of new loan business that meet "realistic" credit criteria.Equitable had recently restructured its businesses to meet the stricter norms for finance companies coming in to effect on December 1.At the time of receivership, Equitable had NZ$179 million of debentures covered under the guarantee and NZ$12 million of non-guaranteed debentures, which the Crown is not liable to pay for.Mortgages totalled NZ$188 million but nearly 44 per cent was classified as core past-due assets, where the interest was in arrears for more than 60 days and where the principal was unpaid on the due date.The company had a BB- credit rating with a negative outlook, which means its rating fell below the minimum threshold required at the time of obtaining the guarantee and there was a possibility this could drop further.