Troubled South Canterbury Finance has estimated it will raise almost $600 million in the year ahead as part of its major restructuring process, but has released details of more loss-making adjustments.
In delivering its six months to December interim report yesterday, for which it had a stock exchange waiver to deliver late, it said liabilities of borrowings for the period were $1.8 billion, up from $813 million at the same time last year.
If the report was not filed yesterday, trading in all South Canterbury securities would have been suspended on Monday.
Its unaudited interim report released in early March had its net loss at $154.9 million, but yesterday revised that to $191 million.
The report was prepared for Treasury and investors as an update, and as a clarification of impaired loans and tax implications on cash flows.
It appears likely South Canterbury is readying itself to raise bonds and debentures.
Craigs Investment Partners broker Peter McIntyre said the release of yesterday's report was part of the "cleansing process" of the past two years' "turbulent waters", and further news was expected in coming weeks.
"South Canterbury are is likely to be very aggressive with [promoting] roll-overs, when bond and debentures mature, and will want to have cash on hand to pay back investors," he said.
A week ago, South Canterbury Finance was included in the Government's extended retail deposit guarantee scheme from October 12; which is estimated will cost it $30 million, after the company only just met the Government's minimum criteria with a Standard & Poors rating of BB.
In the seven months ahead, South Canterbury Finance must have funding available to deal with a total of $1.13 billion of bonds and debentures coming due; $491 million was due to be repaid by June and a further $640 million by October.
Including $22 million of new equity provided by Torch Light Fund No 1 LP recently, just over $200 million, in total, of new equity has been injected into South Canterbury Finance since December.
South Canterbury Finance yesterday said it expected 50% roll-over of debentures, and would attract a further $380 million in the year ahead from new debentures.
Parent Southbury Corp expects to raise an additional $180 million in equity, to buy some of the group's non-core assets, and also expects to raise between $22 million to $37.5 million in convertible notes with Torch Light fund - a total $597.5 million.
Among its further impairments yesterday was loss on loans rising from $93 million for the same period last year to $194 million to December, an early settlement fee to US investors of $20.9 million on a repaid $US100 million loan, losses on property and developments of $2.5 million and losses on financial instruments of $10.8 million.
• The Crown provided $849 million as at February 28 for its retail deposit guarantee scheme, up from $771 million as at January 31, NZPA reported yesterday. The scheme covers 73 financial institutions, with deposits totalling $133 billion.
The Crown continually updates both the likelihood of further defaults and the expected loss from them. The $849 million figure is the latest estimate of the cost of future payments under the scheme after expected recoveries.
