Rockforte triggers guarantee again

Sophia Rodrigues
The New Zealand government will have to pay up once more under its guarantee of investors in retail debentures, with receivers being appointed to tiny, Gisborne-based company Rockforte Finance.

The guarantee amount is expected to be a maximum of NZ$3.2 million. Rockforte had close ties to the Jean Jones clothing chain that closed in August 2009.

In the two months to March 2010 the NZ government raised the provision by NZ$110 million for payments under the guarantee to take the total provision to NZ$881 million.