Its [Stretegic Finance's] best prospect is that SCF swaps their shares and options for Strategic debentures bonds and perpetual notes.This could have been the expected mystery source of new capital Allan Hubbard was reported as disclosing:
South Canterbury Finance is set to get a new injection of capital, but chairman Allan Hubbard is keeping the source of the new money under wraps.Although putting these items together in this way runs an obvious risk of being proven wrong, it also could indicate that a lifeline SCF may have been relying on has disappeared. What options might still remain to improve SCF's position and chances?
- Selling Scales Corporation and/or Helicopters NZ at a profit. This would increase the company's capital, and remedy its breach of its trust deed, and provide it with urgently needed cash.
- Some kind of restructuring of the company's preferred share capital. For example, preferred shares could be converted to ordinary shares, and a renouncable rights issue could raise a small amount of capital. This would also save the company the cost of paying preferred dividends.