South Canterbury Finance makes early repayment of US facility

Friday 26th February 2010

South Canterbury Finance says its liquidity position is sufficiently strong to allow it to repay US$17.7 million of privately placed US a month before they are due.

The terms on the US Private Placement facility had become considerably more onerous since October last year, when the full extent of the company’s balance sheet difficulties became apparent and a series of urgent remedial actions were taken, including replacement of the previous chief executive.

"The company's liquidity position allowed an early exit from the disadvantageous terms imposed by noteholders," said new CEO Sandy Maier, in a statement to the NZX, where SCF has debt securities listed. "The company is continuing to enjoy a net inflow of funds that gathered momentum in January and has extended through February," Maier said.

Southbury Group is also making early payment of the last instalment of the refinancing fee agreed with the USPP noteholders last year.

South Canterbury expected to publish its accounts for the six months to December 31 early next week, and would update on efforts to strengthen the company's capital structure.

Businesswire.co.nz

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