South Canterbury Finance has been granted an extension to the waiver of breach of one of its Trust deed clauses for a further period of three months after the company failed to get the equity required to bring the breach into compliance.As of February 28, 2010, the company was in breach of a clause that required the weighted average value of certain assets to exceed the principal amount of first and second ranking stock, total contingent liabilities secured by such stock and the principal amount of prior charges. The margin deficit amounted to NZ$21.6 million, which the company hoped to correct with the additional equity of NZ$37.5 million from Torchlight Fund No. 1 LP.  A waiver was thus granted until May 31.However, the planned funding did not materialise despite the company announcing a few days ago that it will go ahead, and instead another Torchlight entity - Torchlight Security Trustee - has now increased its funding facility to the company by another NZ$25 million to NZ$100 million. The new transaction means the breach remains in place and the trustees have given the nod to extend it to August 31.The replaced transaction has meant the company's prior charges have risen to 7.2 per cent of total tangible assets. This is just slightly lower than the maximum 7.5 per cent permitted by the Trust deed and is approved by the government's extended guarantee, but it is much higher than 4.4 per cent as of February 28, 2010.