SCF

After the shock came the earthquake.

The sale of South Canterbury Finance has started with receivers calling for expressions of interest for the purchase of its assets.

Teetering South Canterbury Finance, potentially facing receivership next week, is understood to be stitching together an 11th-hour deal with new equity partners this weekend, but the deal could hinge on the Government taking a $300 million or more stake in the company.

A boost in milk production and a tight rein on expenses ensured costs grew more slowly than revenue, helping New Zealand Farming Systems Uruguay (NZFSU) to an improved end-of-year financial result.

Speculation taxpayers may have to fund recapitalising of South Canterbury Finance, is just that.

South Canterbury Finance's preference shares - issued at $1 almost four years ago to raise $100 million - have continued to slide and hit an all-time low of 10c yesterday.

All eligible South Canterbury Finance depositors remain covered by the Crown retail deposit guarantee scheme, but the cover comes at a cost as the finance company's credit rating falls.

Preference shares in South Canterbury Finance, issued at $1 four years ago, took another knock yesterday, plunging from their previous record low of 20c earlier in the week to 15c, albeit on light volumes.

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.