Fisher and Paykel Appliances' finance company has joined four other institutions approved for the Crown's extended retail deposit guarantee scheme. All of them will be covered until the end of next year.
South Canterbury Finance's credit rating has been maintained at BB, on credit watch negative, by international agency Standard & Poors, but its "financial profile remains weak".
Preference shares in South Canterbury Finance look set to test all-time lows - 22c last month - with the $1 shares trading down 15% during the past two days at 23c each.
South Canterbury Finance - which last week booked an after-tax loss of almost $200 million for six months' trading - has released its long-awaited prospectus, seeking to raise up to $1.25 billion from investors to underpin its future.
The South Island economy has received a major boost with the inclusion of troubled finance company South Canterbury Finance in the Government's extended retail deposit guarantee scheme from October 12.
The future of South Canterbury Finance lies in the hands of Treasury and whether or not it accepts the Timaru-based finance company into the extended retail deposit guarantee scheme.
Troubled finance company, Strategic Finance, is unlikely to be bailed out by South Canterbury Finance, as suggested by some commentators.
