SCF blames adviser in ‘please explain’ from NZX

SCF blames adviser in ‘please explain’ from NZX over preference shares

By Paul McBeth

Aug. 5 (BusinessDesk) – South Canterbury Finance Ltd., the embattled Timaru financier, is blaming the 39% plunge in its preference share price on a financial adviser who told clients it will struggle to get a new cornerstone investor.

The NZX sent a ‘please explain’ letter to South Canterbury after the preference shares sank to 10 cents from 16.50 cents yesterday. Chief executive Sandy Maier responded, saying he was aware of a financial adviser writing to clients with the shares and advising them that the firm’s recapitalisation plan will probably fail.

“South Canterbury Finance Limited confirms that positive discussions are continuing with parties who remain interested in participating in the proposed recapitalisation of the company,” Maier wrote in response.

South Canterbury has kept under the radar over the last month as it continues to roll over its investments as the so-called wall of maturities in October draws nearer. Over the June quarter, the firm clawed back more than $50 million in outstanding debts.

(BusinessDesk)

© Scoop Media