South Canterbury Finance will today issue a new investment prospectus for taking money from the public after slumping to a $191 million loss to the six months to December.The company, covered by government guarantee, said it was still a going co
South Canterbury Finance will today issue a new investment prospectus for taking money from the public after slumping to a $191 million loss to the six months to December.
The company, covered by government guarantee, said it was still a going concern despite the loss and its equity position was about the same as it was in the previous reporting period.
The loss compared with a $52 million loss the previous corresponding period and was significantly worse than the $154.9 million preliminary, unaudited loss issued last month.
Further loan impairments (now totaling $194 million), an early settlement fee to US investors of $20.9 million and losses on financial instruments of $10.8 million contributed to the increased loss.
While equity had shrunk from $244 million in July 2008 to $55 million, most of that difference has come back from equity injections this year. These included the recent $152.5 million put in by founder Allan Hubbard and an investment by George Kerr's Torchlight fund of $22 million.
South Canterbury, which owes more than $1.9 billion to investors, will now look to raise new debenture funds through a new prospectus expected to be released today.
Chief executive Sand Maier has said the company is looking to issue a range of different investment products targeting a new audience.
The extended guarantee was a key step to enable that.
However, it is understood the company still needs about half its exiting debenture base to roll over their investments.
The accounts were released nine days after they were supposed to be.
