Alan - try BISHA.
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Alan - try BISHA.
Why has this thread been moved??
Week nearly over ,,, USD45m due today ...... and still no sign of the NZD75m debt facility??
M
BISHA.NZX - BIS 00/00/00 9.89% BNZ Perpetual Non-Cumulative Securities
BNSPA.NZX - BNZ Income Securities 2 Limited Perpetual Non-Cumulatives
Apologies for the late response:
For the Trust Deed and all the formal filings ... go to the Companies Office site and look up South Canterbury Finance:
http://www.companies.govt.nz
This site is really interesting ... you can trace all the Trust Deeds and prospectus filings of any company. Just might have to load up the Trust or Limited Liability Company elements to track down the seat of an investments filing. Very useful site for the investment researcher's "bag of tricks".
No, my understanding is that they can freeze payments and not incur any obligation to accrue payment at any future date. The only thing that stops them from using the SCFHA as a zero rated loan is the Trust Deed provision that they cannot payout on the SCF ordinaries, while the SCFHA are zero rated. My fear is that if they are recapitalised ... the new shareholders would welcome a period of nil payouts while they rebuilt the SCF capital structures ... SCFHA would be used as cheap equity ... without any prospect of sharing in the upside.Quote:
Originally Posted by Alan3285
I realise that this is a very low probability possibility ... it would significantly damage SCF from a future capital raising perspective. However, it is an "exposure" I am not comfortable with.
Check new special offer on debentures on IRG group website I would say they are getting desperate www.equity.co.nz/ hope this is correct web address for the offer as it came by email.
South Canterbury Finance, will seek cover under the government's extended retail deposit guarantee after it released a new prospectus earlier this week.
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.
South Canterbury Finance also reaffirmed its commitment to meeting the Reserve Bank's capital ratio requirements through the recapitlisation plan, and is confident that it will be taken off rating agency Standard & Poor's negative creditwatch after releasing the prospectus, allowing it to raise new funds.
Like Marac, South Canterbury Finance is moving away from property lending, which left a large hole in its financial statements due to impaired loans, though due to the lack of liquidity in the market it recognises this will be a gradual process.
It also said it would reduce its level of related party loans by at least $50 million.