A banking expert says the Government is likely to be paying close attention as South Canterbury Finance nears a deadline for securing new investment.
The company's Trustees have given it until Tuesday to find new capital and avoid the prospect of receivership.
It's covered by the Government's retail deposit guarantee.
South Canterbury Finance is majority-owned by Timaru businessman Allan Hubbard. It has about $1.9 billion in assets.
Massey University banking lecturer Claire Matthews says the Government will be interested in the result as Treasury might have to make a substantial payment to investors if the company goes into receivership.
She says it's a tough environment to be seeking extra investment but believes South Canterbury Finance may be helped by its strong reputation.
The Labour Party fears the Government's handling of the inquiry has unnecessarily implicated all of the businessman's companies.
Labour's commerce spokesperson, Lianne Dalziel, is concerned that the Hubbards' other large company, South Canterbury Finance, is being implicated by association.
"The fact that South Canterbury Finance was not included in the statutory management is lost on the investing public and that's why investors are concerned," she said.
Mr Hubbard on Friday criticised statutory managers for issuing a report highlighting financial problems with some of his other companies
He said it was bad timing, given the critical stage in the life and survival of South Canterbury Finance.
South Canterbury Finance chief executive Sandy Maier says the company is in talks with about five prospective investors.
