South Canterbury Finance has extended its special reinvestment offer to existing guaranteed debentures of 8.25% for a further 3 weeks to July 23 as it looks to roll over investments due to mature before early October, the initial end of the first government guarantee.
South Canterbury Chairman Bill Baylis and Chief Executive Sandy Maier made the offer in an update to investors attached in full below.
They said an earlier offer made in May had seen nearly two thirds of investors agree extend their investments for a further 12, 15 or 16 months.
"We encourage you to take advantage of this 8.25% rate while the opportunity is still available," the said. "As we are significantly reducing our 'wall of maturities' it is likely we will revisit our interest rates on offer and adjust them downwards to meet the market as we move forward."
South Canterbury Finance is included in the government's extended government guarantee scheme that is due to expire at the end of December next year.
Baylis and Maier repeated earlier comments that the decision to put Allan Hubbard into statutory management was a surprise and that investors should not make hasty judgements.
"That said, South Canterbury Finance's status and position in all of this is very clear to us. We are a standalone business and it is business as usual for us. The turnaround we are undertaking remains on track and our goal remains to restore South Canterbury Finance's status as one of the largest and most successful finance companies in a considerably reduced but necessary finance sector in New Zealand."
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