7 May 2010

South Canterbury Finance set for another cash injection

7:34 am on 7 May 2010

South Island businessman George Kerr is set to inject a further $15.5 million into South Canterbury Finance.

Mr Kerr has already invested $22 million into the finance company and there's an option for this to increase to $37.5 million.

Radio New Zealand understands the details of the transaction are close to being finalised and are due to be announced shortly.

The cash injection comes at a crucial time for the company.

Global credit rating agency Standard and Poor's on Thursday warned it may downgrade South Canterbury's BB rating by a notch or more if it fails to increase its cash balance to at least $150 million by the end of May.

South Canterbury Finance chief executive Sandy Maier says he is talking with George Kerr about futher investment but says nothing has so far been agreed.

While the BB credit rating is the minimum required to participate in the Government's extended retail deposit guarrantee scheme, South Canterbury Finance has already been accepted and a lowered rating would not affect this.