Hubbard flags offshore investor for South Canterbury Finance

After stepping down from the board last month, Hubbard made his top priority to find a new partner for the finance company, and in a statement lambasting the government for putting some of his affairs into statutory management, he indicated an agreement would be forthcoming. Any overseas injection of more than $100 million in equity or assets would require consent from the Overseas Investment Office.

"In the past month I have been working on finding a solution to South Canterbury Finance affairs and hope to arrange an agreement with an overseas company, subject to confirmation by June 30 to inject a large amount of capital which would place South Canterbury Finance in a secure position for the future," he said in a statement.

Chief executive Sandy Maier said the June 30 deadline might be a little optimistic, and the statutory management will likely affect that, though "if it's a good clean commercial decision," it should not be a problem.

Commerce Minister Simon Power announced Hubbard, his wife, Aorangi Securities, and seven charitable trusts were placed under statutory management while the Serious Fraud Office investigates alleged irregularities over the lending of some $134 million. Maier said South Canterbury does not appear to have exposure to any of the investments placed under statutory management.