South Canterbury Finance is blaming an unnamed financial adviser for the substantial slump in the price of its perpetual preference shares this week.
NZX regulation business leader Garth Stanish wrote to SCF noting that the price of the preference shares on the NZDX fell from an opening price of $16.50 a share on Tuesday to close at $10 a share on the same day.
That represented a fall of nearly 40%.
SCF chief executive Sandy Maier replied that the company was aware that a financial adviser had written to clients who held the perpetual preference shares.
The adviser wrote expressing the view that the recapitalisation process currently being pursued by the company was unlikely to be successful.
"SCF confirms that positive discussions are continuing with parties who remain interested in participating in the proposed recapitalisation of the company," Mr Maier said.
