Click here to watch this morning's video. Bernard Hickey details the key news overnight in 90 seconds at 9am in association with ASB, including news that South Canterbury Finance has registered its prospectus, but has disclosed new uncertainties. This means it can raise money again from the public while it seeks to raise new equity and funding. The prospectus also disclosed significant uncertainty remains around its future. It still needs to find new equity investors for the Southbury Group and finalise new funding from a third party. It also needs to retain a BB credit rating (currently BB+) to remain in the government guarantee scheme beyond October 2010. It is offering 8% until October next year, but only 8.5% beyond that. This is not high enough to justify the risks. I would say to my mother in law the she should not reinvest beyond the expiry of the current guarantee while these uncertainties have yet to be resolved. There are too many uncertainties.
90 seconds at 9am: South Canterbury prospectus out, but uncertainties abound
90 seconds at 9am: South Canterbury prospectus out, but uncertainties abound
21st Oct 09, 8:50am
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