Wellington, June 1 NZPA - South Canterbury Finance has made some progress in its bid to attract reinvestment ahead of a potential funding crunch.

The finance company is also continuing to work to get consents needed to put into place a $37.5 million equity injection.

By yesterday, the holders of $132.9 million of debentures due to mature in coming months had reinvested in new, longer-dated debentures, South Canterbury Finance chief executive Sandy Maier said.

"As a result, the company's maturity profile and reinvestment rates have been significantly improved," he said.

"By rolling these maturities over early, refinancing with new funding from other sources is not required."

There had been $180m in maturities due at the end of June.

SCF was working to obtain the consents required to enable $37.5 million in new equity involving South Canterbury's parent company, Southbury, and Torchlight Fund No 1.

SCF was also close to finalising terms with New Zealand Credit Fund to replace a $75m funding facility.

SCF has had its long term credit rating downgraded by two notches to B plus by Standard & Poor's, but remains covered by the Government's extended retail deposit guarantee scheme.

Mr Maier has previously said that about two thirds of investors canvassed were indicating an intention to renew deposits.