South Canterbury Finance has removed its 10-week-old prospectus from its website for amendments, having launched it in mid-April to raise up to $1.25 billion from investors.
The 85-year-old company was offering $1.2 billion in registered debenture stock and $50 million of unsecured deposits.
The $1.2 billion debenture stock is covered by the Government's guarantee scheme, while the $50 million of unsecured deposits is not.
Following the announcement on Sunday that its founder and company president for life, Allan Hubbard, has had a mortgage company and seven trusts placed in statutory management by the Minister of Commerce, and faces a Serious Fraud Office investigation, South Canterbury removed the prospectus from its website.
The website said, "The South Canterbury Finance Investment Statement and Prospectus are currently being amended. We are unable to accept deposits during this process."
The prospectus was "temporarily unavailable", but a "new Prospectus and Investment Statement" would be uploaded to the website to access.
Craigs Investment Partners broker Peter McIntyre was "surprised" at the prospectus withdrawal, having understood the statutory management of Mr Hubbard's mortgage company, Aorangi Securities, was separate from, and did not involve, South Canterbury.
South Canterbury chief executive Sandy Maier said the company was continuing "to vigorously pursue the turnaround in performance" of South Canterbury.
"This will include the processing of thousands of notices from investors who have demonstrated support for the company by extending the maturity date of investments that were due to mature in the next few months," he said in a statement yesterday.
The percentage of roll-over rates of existing investors in the forthcoming maturities have not been disclosed, nor has the percentage of uptake to date in the now-withdrawn prospectus.
In mid-August last year, international rating agency Standard and Poors downgraded South Canterbury's credit rating to BB+, prompting it to cease taking securities and withdraw its prospectus at the time.
Aside from seeking a major recapitalisation from an overseas source at present, South Canterbury, in the five months ahead, must have funds available to deal with $1.13 billion of bonds and debentures coming due; $491 million by June and a further $640 million by October.
South Canterbury confirmed late last week Mr Hubbard had entered into negotiations and formal due diligence with more than two parties, including one from overseas, to buy a share in South Canterbury, potentially injecting an estimated $300 million to $400 million as equity partners.
It will be Mr Hubbard's final decision as to any new equity partner, as it would be a percentage of his stake in parent Southbury Corporation which would be sold.
However, Mr Maier expected Mr Hubbard and the statutory managers to work "shoulder to shoulder" on the new equity partner issue and decision-making, saying Mr Hubbard's statement of an investment confirmation by June 30 was "just a target to work toward".
In a statement Mr Hubbard, outlined an agreement was under way with an overseas company.
