Allan Hubbard is blaming Government regulations for the failure of South Canterbury Finance.

Finance Minister Bill English says its quick payout to cover losses by South Canterbury Finance investors will mean "minimal disruption" to the wider economy.

The Government has this morning paid out $1.7 billion to cover investor losses from the collapse of South Canterbury Finance.

The Govt has already made a $1.7bn payment to the trustees of South Canterbury Finance, which today called in the receivers.

Sth Canterbury Finance chief executive Sandy Maier says an announcement that will have "good and bad" in it is due sometime after 9.30am today.

Bill English cancelled an overseas trip and John Key last night refused to rule out an injection of taxpayer funds as the Govt grappled with the fate of South Canterbury Finance.

Finance Minister Bill English has postponed his departure overseas to deal with stricken South Canterbury Finance.

Finance Minister Bill English has postponed his departure overseas to deal with issues that could follow tomorrow's announcement on the future of South Canterbury Finance.

South Canterbury Finance has told the NZX "there can be no certainty" its recapitalisation and restructuring proposals will be successful.

Taxpayers are facing a bill for $1.55bn unless South Canterbury Finance can be pulled from the brink of failure before tomorrow night.

South Canterbury Finance needs a new backer or a government bail out to avoid receivership.

Supporters of businessman Alan Hubbard have written to John Key urging him to reconsider the Government's approach to inquiries into Mr Hubbard's affairs.

Allan Hubbard's finance company is near receivership and is understood to be in last-minute talks with the Govt and overseas investors to avoid NZ's largest corporate collapse in decades.

The value of some investments were overstated by at least 25 per cent.