The Government states it will assure $7.3 million, or the mass of investors' deposits, in unsuccessful Auckland finance corporation Viaduct Capital.

Viaduct Capital placed itself into receivership stance yesterday. McDonald Vague has been chosen as receiver.

Colin Wilson, of Prince and Partners Trustee Company, which was ordered by Viaduct Capital to assign the receivers, stated the move was to guard the interests of shareholders via an orderly understanding of the firm's assets.

Viaduct has around 110 shareholders and around $7.8m in deposits. Around 93%, or $7.3m, is covered by the Government retail deposit guarantee system, with the balance of $500,000 that is unguaranteed.

In April the preceding year, the Crown kicked Viaduct Capital off the system but stated that deposits made in advance would carry on to be covered.

Treasury Director of Financial Operations, Brian McCulloch stated today that the appointment of receivers activated the Crown's assurance.

The Crown stands completely at the back its assurance promises, and it is expected to see an arranged procedure of payment to entitled Viaduct Capital investors.

Treasury slashed Viaduct from the assurance system over worries that Paul Bublitz's Hunter Capital Group may have received advantage from the assurance in a way that was unintentional by the Crown.