A portfolio of logistics businesses will be used to prop up the balance sheet of the loss-making South Canterbury Finance. The Timaru-based financier, however, still needs more capital, which it is seeking to raise through brokers Forsyth Barr.The firm also wants, and may well need, an extension on the New Zealand government guarantee over finance company debentures, of which it has NZ$1.5 billion. Financiers must apply to Treasury for a one-year extension to late 2011. The firm has a credit rating of BB+ from Standard & Poor's.The finance company's cornerstone investor, Allan Hubbard, has negotiated with the board to sell his 100 per cent owned Helicopters (NZ) and his 64 per cent stake in shipping, trucking and storage business Scales Corp into South Canterbury.The financier will pay for these assets with new South Canterbury shares valued at NZ$152.5 million and NZ$10 million in cash.Hubbard's shareholding will breach a term of the firm's trust deed, but the trustee has granted a waiver.South Canterbury yesterday reported a loss for the half year to December 2009 of NZ$154.9 million after it booked NZ$229 million of losses on asset realisations and further impairments on loans."We've had a shareholder who instead of walking away has said: 'Yes, I'm going to massively support this company'," South Canterbury and Southbury Holdings Chief Executive Sandy Maier told Interest.co.nz. "He has increased the equity and his investment in South Canterbury in a very large way," Maier said.Helicopters and Scales generated a combined EBITDA of NZ$65.6 million in 2009 and a combined net profit of NZ$29.8 million, implying the financier paid 5.5 times historic profits to Hubbard for these assets.However, South Canterbury warned that profits from Helicopters and Scales may not be so strong in the current year. Helicopters NZ provides services to the mining, agriculture and tourism industries in New Zealand, Australia and Vietnam. Scales runs packing, coldstores and shipping agency operations for apple and other primary exports in New Zealand. Maier told Interest.co.nz that South Canterbury's cash holding was currently "reasonably robust at this point in time. At this point I'm comfortable with it." Maier said there had been a steady inflow of funds in excess of redemptions through January. "The re-investment of funds has also continued at satisfactory levels as qualifying investors continued to seek the benefit of the Company's attractive rates and Crown retail deposit guarantee scheme," he said.South Canterbury had cash on hand of NZ$13.6 million at December 31, down from NZ$322.5 million a year earlier and NZ$123.3 million six months earlier. South Canterbury is currently offering 7 per cent for a guaranteed deposit for five months until the end of the deposit guarantee.Interest.co.nz