Standard & Poor's has highlighted debenture refinancing pressures in a decision to keep its rating of finance company South Canterbury Finance Ltd on creditwatch with negative implications.
The new chief executive of beleaguered South Canterbury Finance, Sandy Maier, is upbeat about saving the southern lending giant. Business reporter Simon Hartley reviews progress on the massive, and painful, restructuring of the 85-year-old company.
South Canterbury Finance's auditors have raised concerns there are uncertainties surrounding the giant southern finance company's funding, liquidity and capital as it strives to regain traction with an up to $1.25 billion capital-raising programme.
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.
South Canterbury Finance is expected to announce this week an offer of longer term debentures to offset a looming more than $1 billion "wall of maturities" due later this year.
South Canterbury Finance is looking to offer longer term and new deposit products, following the company's approval for the Crown's extended retail deposit guarantee scheme.
