South Canterbury withdraws prospectus while waiting for audit signoff (Corrected)

South Canterbury Finance has told financial advisers and updated its website that it had closed and withdrawn its prospectus yesterday while it was completing an audit of its accounts. This means it has stopped accepting allotting new money to debentures while it prepares a new prospectus, which is expected to be lodged after its audited accounts are released later this month. South Canterbury announced on August 28 it had stopped allotting any rolled over investments or new investments to debentures since August 13 while it prepared a new prospectus in the wake of Standard and Poor's decision to downgrade the Timaru-based property financier from an investment grade rating of BBB- to a non-investment grade rating of BB+. This meant money awaiting allotment to new debentures was put in trust. A South Canterbury spokesman said nothing had changed since August 13 except that the prospectus had been formally withdrawn. (Corrects earlier version of this article saying no new money was being accepted) South Canterbury has said it expected to release its audited accounts for the year to June 30 on or before September 30. South Canterbury is currently working to raise fresh capital from new investors to bolster its balance sheet and to try to convince US bond holders not to withdraw funding. Here is the full note below sent to investment advisors.

Please note that as from 17 September 2009 the offer under Prospectus No 59 dated 24 October 2008 is closed and has been withdrawn by South Canterbury Finance together with our Investment Statement dated 30 April 2009. Accordingly no securities may be allotted under it. Please ensure that you don't make either offer document available to any potential investors and remove the documents from public access. The Company intends registering a new prospectus as soon as possible after its audited accounts for the period 30 June 2009 are available.