South Canterbury Finance will seek govt guarantee extension
The prospectus revealed chairman Hubbard came to the rescue of the finance company once more, and he has personally injected around a quarter of a billion dollars into South Canterbury over the past three years.
However, this will probably be the 81-year-old's last hurrah, as he announced he will be retiring as chairman within 12 months as the company brings on two independent directors to the board - one of whom will take up the role as chair - and bolster its management team.
The prospectus revealed the finance company will look to raise as much as $75 million in a private placement, and it is also considering selling off its dairy farming assets.
The prospectus was released after South Canterbury Finance organised a repayment plan in installments to U.S. investors owed US$100 million after the company's credit rating was down-graded to a BB+ and put on negative creditwatch. Hubbard's Southbury Group will foot the penalty to the tune of US$15 million.
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