South Canty 'behind target'

South Canterbury Finance chief Sandy Maier. Photo / Supplied

South Canterbury Finance chief Sandy Maier says the company is making good progress on realising loans but its capital-raising is behind where he hoped it would be.

The troubled finance company yesterday said it had recovered $202 million in outstanding loans since the beginning of the year.

But Maier, who took over as chief executive at the end of last year, admitted a bid to raise $1.25 billion in new and replacement capital was proving tough. "It never goes as well as you would like. It's a little bit behind where I want to be. It is going okay," he said.

South Canterbury launched a new prospectus last month, a week after revealing the company had made a $198.6 million loss in the six months to December 31.

In its accounts the company said it hoped to roll over about 50 per cent of its current debentures and attract $380 million of new money in the next year.

Maier said he had been working with investors whose money was due to mature soon and more than 50 per cent were rolling over.

He did not know exact figures but said South Canterbury had raised between $50 million and $100 million so far. Before launching the prospectus the company had around $1.9 billion in debentures of which $461 million were due to mature between April 1 and June 30.

He remained confident the company would raise the amount it needed to recapitalise the business.

The company had cashed up about 10 per cent of its total assets since January 1.

"This is in addition to the normal maturing and repayment of consumer and business loans that is ongoing."

South Canterbury is covered under the Government's deposit guarantee scheme until the end of 2011.