Receivers have been appointed to South Canterbury Finance.
The company today said it has been unable to complete a recapitalisation and restructure.
As a result, the company would have been unable to certify to Trustees Executors, in accordance with the terms of its debenture trust deed with Trustees Executors, that it was compliant with various financial covenants under the debenture trust deed for the financial year ended June 30.
``Accordingly, South Canterbury Finance Limited has requested Trustees Executors Limited to appoint a receiver in respect of the whole of its undertaking and assets, and Trustees Executors Limited has done so,'' SCF said.
A further announcement will be made in due course.
SCF owes investors about $1.7 billion and had been trying to put together a deal with new backers.
The company, one of New Zealand's biggest non-bank institutions, is part of the Government's Retail Deposit Guarantee Scheme, and yesterday Prime Minister John Key was focused on assurances the company's investors will get their money back.