The Timaru-based finance company was downgraded two notches to a B+ last week by Standard & Poor's over the slow pace of its refinancing, though chief executive Sandy Maier stressed that it would not impact on South Canterbury's position in the government's extended retail deposit guarantee, nor did it breach the trust deed of any other financial covenants.

Maier was upbeat about the latest reinvestment of $132.9 million worth of debentures, as at May 31, saying it was "very strong progress," though they are taking things a day at a time.

"That's $130 million out, and they've continuing to accelerate over last couple of days," Maier told depositrates.co.nz.

Maier said the company is working to complete the $37.5 million equity injection from George Kerr's Torchlight Fund No 1 LP, via Southbury Corp., with the consents needing clearance from both the trustee and the Treasury, and he expects it to come through next week.

The firm said it is also close to finalising a replacement facility with the NZ Credit Fund, which Maier said will probably be the same as the $75 million funding line that is nearing its expiry date.

South Canterbury's long-term owner, Allan Hubbard, stepped down as chairman after 30 years last week, taking on the title President for Life, and he will work to help the finance firm get through its current liquidity problems, and secure an equity partner to take it into the future.