Sth Canterbury finance talking to new private investors

South Canterbury Finance founder and chairmman Allan Hubbard.

South Canterbury Finance says talks are continuing with investors after a credit rating downgrade triggered a review of a US$100 million ($143.7m) private placement facility in the US.

Last month Standard & Poor's cut South Canterbury's credit rating to the non-investment, or junk, grade of BB plus.

The rating downgrade entitled the private placement investors to require repayment three months following the downgrade.

In an update today, South Canterbury said it had held "constructive" discussions with those investors about their intentions.

"These discussions are continuing."

South Canterbury also said it was in advanced discussions with two potential new independent directors regarding their appointment to the board, and would make an announcement once confirmed.

Work related to restructuring of the company and capital raising initiatives continued, with a further announcement in coming weeks.

South Canterbury ceased allotting securities under its debenture stock prospectus on August 21.

All funds received by the company after August 20 had been placed in trust on behalf of subscribers.

South Canterbury said it now planned to register a new debenture stock prospectus following the release of the company's audited accounts, expected on or before September 30.

- NZPA