South Canterbury calls in receivers

South Canterbury Finance announced today that it has been unable to complete a recapitalisation and restructure.

Tuesday, 31 August 2010

by BusinessWire

As a result, the Company would have been unable to certify to Trustees Executors, in accordance with the terms of its debenture trust deed with Trustees Executors, that it was compliant with various financial covenants under the debenture trust deed for the financial year ended 30 June 2010.

Accordingly, South Canterbury Finance has requested Trustees Executors to appoint a receiver in respect of the whole of its undertaking and assets, and Trustees Executors has done so. A further announcement will be made by the Company in due course.

Finance Minister Bill English will make a statement this afternoon, once trustee Trustee Executors has made a statement, according to a spokesman for the minister.

The Treasury is also expected to make a statement.

English delayed a trip to South East Asia by at least a day because of SCF's turmoil.

Before the announcement was made, chief executive Sandy Maier told Radio New Zealand the decision would surprise people, and that there would be winners and losers. He also said it will probably be misinterpreted and take several days before people realised what it meant.

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