Embattled South Canterbury Finance has made its final payment
to American investors - $24.3 million - a month early in
order to exit a $100 million loan whose terms it yesterday
described as "disadvantageous".
The final payment yesterday of $US17.7 million ($NZ25.5
million) was a combined payment of $US7.5 million due in
February and the final payment of $US10 million due on March
31, 2010, plus accrued interest, South Canterbury Finance
chief executive officer Sandy Maier said.
"The company's favourable liquidity position allowed an early
exit from the disadvantageous terms imposed by note holders
in October 2009."
In August, a Standard and Poor's rating downgrade to
non-investment, junk bond territory gave the United States
consortium an option to call in its loan facility within
three months - which was enacted in mid October last year.
South Canterbury signalled earlier this month it would report
an unspecified six-monthly trading loss when it reports early
next week.
It is in the middle of a major recapitalisation programme and
its parent company, Southbury Corporation, is preparing to
list on the New Zealand stock exchange.
Mr Maier said South Canterbury was "continuing to enjoy the
net inflow of funds that gathered momentum in January and has
extended through February" and would report on its progress
in the "strengthening of its capital structure".
He said Southbury Group was making an early, but unspecified,
payment of the last installment of the refinancing fee agreed
in October with the US consortium.
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