McLeod quits Sth Canterbury Finance

Lachie McLeod has resigned as South Canterbury Finance chief executive, the latest in a series of personnel changes at the troubled finance company.

McLeod said he stood down from the company because he has "run out of petrol", not because he was pushed.

"I've resigned on my own terms," he said.

Chairman Allan Hubbard - one of the South Island's richest men - said: "I think it's time for a change," and that McLeod had disappointed some in the company, including staff and directors.

McLeod yesterday would not comment on when or how he would pay back a $15 million loan to SCF's parent Southbury Group or any exit package details.

He said he needed more time with his family after six years with SCF but admitted a push into property development loans had made "things more difficult" for the company.

Hubbard, who owns the majority of Southbury Group which holds all the ordinary shares in South Canterbury, said McLeod had made some mistakes in his role as CEO including leading the company into the troubled property development sector.

Hubbard revealed in the middle of his chairman's speech to SCF's annual meeting in Timaru that McLeod was standing down. He said the address had been well received by the audience.

Earlier this year McLeod discounted market rumours that he would leave the role. McLeod said he could not disclose what conditions might surround a loan of about $15m from Southbury. He had personally invested in the dairy sector for 11 years but would not disclose the size of his farm holdings.

The Southbury Group would recapitalise with a float of some of its entities - including Scales Corp, Helicopters NZ and SCF - in 2010.

Hubbard said the $15m loan would probably be paid back by McLeod when Southbury Group floated - most likely in March. McLeod owns about 10 per cent of Southbury.

"If we float he'll get shares in the float which will probably equal the loan, and he could sell some of them."

Asked about McLeod's reasons for going, Hubbard said McLeod was a farmer at heart and that it had been a stressful and difficult period for him in recent months. "I suppose he thought perhaps he'd like to do something different."

Asked to judge McLeod's performance as CEO during the six years, Hubbard said: "I suppose we've made a record loss in this last year, so normally someone has to take the blame for it don't they?"

"I suppose he lost a bit of credibility with other directors and staff and things."

Hubbard said McLeod did not deserve all of the blame for the company's troubles and was "a nice chap and gets on well with clients . . . He's sort of a good friend and I hope it remains that way."

SCF remains under threat of a further credit rating downgrade by Standard & Poor's.

Hubbard said SCF had received about $70m of new debenture loans through its fresh prospectus but the company would like even more.

He had been happy to get a good reception from SCF investors at the annual meeting, including the presentation of a car number plate which said: "Allan Hubbard, the most trusted man in New Zealand".

He was unlikely to stand down as SCF chairman, as previously indicated, in the short term but rather would stay on to March.

"I'd sooner lead us to calmer waters, and then I might give it a miss [resign]."

Nigel Gormack had been appointed as interim SCF chief executive from December 1.

New SCF directors Arthur Baylis, Stuart McLauchlan and James Shale were appointed.

- © Fairfax NZ News