South Canterbury Finance revealed in its annual report that its banks had turned off an unused NZ$100 million lending facility to the finance company while it hunted for new capital.SCF also reported a lower net loss after tax credits of NZ$49.6 million, which was revised from a previously reported net loss for the year of NZ$67.8 million initially reported at the end of August.The annual report also included an opinion from SCF's auditors, Woodnorth Myers & Co, that there was a "fundamental uncertainty" about South Canterbury Finance's status as a 'going concern' because of the risk that US lenders may withdraw a NZ$153 million private placement in the wake of South Canterbury's downgrade to a sub-investment grade BB+ credit rating by Standard and Poor's.S&P subsequently put that rating on "creditwatch negative" review for possible further downgrades of multiple notches because of concerns about liquidity and related party lending.SCF, controlled by veteran South Island financier Allan Hubbard, said in the annual report it expected to make an announcement about its capital raising plans in mid-October. The release of the audited annual report was delayed because of a peer review by the NZ Institute of Chartered Accountants.While SCF hopes to issue a new prospectus and raise new funds from the public, this may only be possible if Hubbard manages to sell other personal assets to recapitalise the business.This means selling some or even all of his portfolio of dairy farms at an unfavourable time in the dairy cycle in New Zealand.Interest.co.nz