Hubbard’s woes may hinder fund raising: SCF
Posted on : 19-06-2010 | By : Andrew Miller | In : Financial News
Tags: Fund, Fund Raising
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June 22 () – South Canterbury Finance Ltd. has reissued an amended prospectus to raise new funds, saying the ‘attack’ on owner Allan Hubbard’s character may dent its ability to tap the public for cash.
The Timaru-based finance company says the appointment of statutory managers in respect to Hubbard and some of his business interests over alleged lending irregularities “may adversely affect the ability of the company to raise funds from the public given the long-standing relationship that Mr and Mrs Hubbard have had with the company and the public perception likely to be created by the appointment of statutory managers.”
The firm flagged the issue as a liquidity risk and a threat to its continued supply of funding in its amended prospectus.
South Canterbury had to pull withdraw and update its prospectus yesterday after the government placed Hubbard and some of his interests under statutory management. Still, Comm