South Canterbury in trading halt

www.depositrates.co.nz

Thursday 15th October 2009

Timaru-based finance company South Canterbury Finance has requested a trading halt to its securities listed on the NZDX. There is no indication about what the company is planning to announce.

It says in a statement to the exchange that the trading halt was requested "pending a material announcement relating to the company."

The market and investors are watching the company closely following its earlier announcements that it is going through a major restructuring and recapitalization. It is known the company desperately requires new capital to meet upcoming capital adequacy rules.

SCF has appointed Forsyth Barr and Harmos Horton Lusk as advisors.

Earlier the company said that it planned to update the market in mid October.

Since it at announced its audited year-end financial results recently the company has been in talks with US investors over a $US100 million private placement. Due to the state of its accounts the US companies had the option of seeking immediate repayment of the facility.

SCF isn't accepting new investments at present as it doesn't have a current registered prospectus.

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