Hubbard brings companies under a new umbrella, raises $27 mln for SCF

Monday 11th January 2010

Timaru millionaire Allan Hubbard has brought his finance, helicopter and apple export companies under a new umbrella, Southbury Corp., and completed a $27.5 million private placement to inject capital into his ailing finance company.

The new parent company now owns 100% of South Canterbury Finance Ltd. and Helicopters NZ Ltd, and almost 80% of Scales Corp., some $2.8 billion worth of total assets as at June 30 last year.

Southbury Corp. issued convertible notes in a placement arranged by Forsyth Barr with subscriptions from institutional and private investors, for new capital in the finance company.

The notes will convert into equity in Southbury if it’s floated on the stock exchange, or are otherwise redeemable for cash.

“The formation of Southbury Corporation and issue of new notes convertible to equity are major steps in our restructuring,” Hubbard said in a statement.

Hubbard recently appointed Sandy Maier to head up his Southbury Group and South Canterbury Finance to affect change over the coming year.

Hubbard was forced to inject funds into his finance unit and underwrite bad loans in 2009 after it posted a net loss of $69 million in the year through June, and was forced to renegotiate repayment terms with a group of U.S. investors after it lost its investment grade credit rating.

The company will look to raise a further $50 million in a second stage of a capita- raising, and Hubbard said he would consider selling his farming business to bolster the balance sheet in South Canterbury’s November prospectus.

Businesswire.co.nz

Comments from our readers

No comments yet