South Canterbury Finance has been working on re-capitalization and major restructuring of the company and announced to halt trading on its listing securities for some time. The Timaru-based firm is expected to update the market in mid October.
There are also speculations of floating some part of Allan Hubbard's Southbury Group, having major stocks in the company. Forsyth Barr and Harmos Horton Lusk are appointed to give financial advice over the financial restructuring and re-capitalization matters by the owners of the firm.
Timaru-based South Canterbury Finance (SCF), controlled by veteran South Island financier Allan Hubbard, has received no financial aid for meeting its capital requirements, as revealed by the finance company in its audited annual report for the year ended June 30, 2009.
The finance firm was degraded to BB+ by Standard and Poor's in its credit rating, indicating uncertainties about its future. Auditor Woodnorth Myers & Co said that US lenders may withdraw a NZ$153 million grant to the firm in the wake of its degraded performance.
The appointment of David Mayhew as commissioner for financial adviser gets welcome from the Institute of Financial Advisers (IFA). The IFA said that the move will strengthen the position of the institute, given Mayhew's experience and financial market wisdom.
OPI Pacific Finance, the third largest failed finance company of New Zealand, has been placed in receivership by its trustee as it has still pending $257 million liabilities to small investors fearing for their money.
The firm has yet to provide $200 million to the debenture holders and $56.7 million to the note holders, from the total $257 million amount it had owed.
The moratorium of OPI Pacific, formerly known as MFS Pacific Finance, was earlier expected, following the court's order for liquidation of its Australian parent Octaviar in July.
A decision to examine the causes for the failure of finance companies, passed by a commerce select committee, has left Southern investors numb and unimpressed, more so as they are already caught in the mess of failed financial investments.
It was forwarded yesterday by Select committee Lianne Dalziel, that an inquiry would be conducted with the aim of investigating the failures of about 30 finance companies. These companies have either frozen investor repayments in the past three years or have gone into receivership, liquidation, or entered into moratoria.
Friday saw fund managers AMP Capital Investors specifying that there is a good chance that New Zealand's recession has come to an end. However, it did give a warning that it will take some time for a return to strong growth.
At a briefing on its quarterly result, Jason Wong, AMP Capital's head of strategy, said: "On balance, we think the recession is pretty much over."