A rescue package for South Canterbury Finance (SCF) could be known as early as 9.30am.In media interviews this morning, SCF chief executive Sandy Maier said he was up until 4.30am stitching up a deal he expected to announce to the NZX around 9.30am. Mr Ma
A rescue package for South Canterbury Finance (SCF) could be known as early as 9.30am.
In media interviews this morning, SCF chief executive Sandy Maier said he was up until 4.30am stitching up a deal he expected to announce to the NZX around 9.30am.
Mr Maier said he has been talking to three parties but has not given details. On TV One's business programme, he said people would be surprised by the statement.
He told Radio NZ that the announcement would not resolve the situation but would be a step in a process.
He also said media commentary on SCF over the past couple of days had been "short-sighted.”
See also, South Canterbury offloading assets ahead of D-day.
The deal is likely to include refinancing of loans to debtors, who cannot repay, and is part of "an ongoing development." The debtors include many borrowers for dairy farm conversions.
Speculation over new investors has included Sydney-based investor Duncan Saville and two funds, Torchlight, run by businessman George Kerr, and Shearwater, based in Australia.
America’s biggest bank, JP Morgan Chase, is also said to be involved.
A recapitalisation would enable the company to stay in business. Other options are for the trustees to extend its deadline to be compliant with the trust deed, or for a receivership and restructuring.
Finance Minister Bill English has called off a trip to Asian financial capitals to oversee taxpayers’ interests in a deal.
SCF debenture holders are covered by the government’s retail deposit guarantee scheme and failure would expose the taxpayer to large losses.
SCF's founder Allan Hubbard, who was its chairman until March, said on Sunday a deal was on the table that could save the company but government cash might be needed as well.
Two of Mr Hubbard's other companies, Hubbard Management Funds and Aorangi Securities, have been put under statutory management along with Mr Hubbard himself and his wife Jean.
The Serious Fraud Office said yesterday its investigations into those companies were continuing.
