by Paul McBeth
Neil Gormack, a partner in Timaru's chartered accountants HC Partners, will act as interim chief executive from December 1, and McLeod will continue to work as a consultant to South Canterbury until a new permanent CEO is found. McLeod will continue to consult in Hubbard's other business interests.
"The last 18 months have been particularly turbulent for the finance industry with pressures unleashed by the global financial crisis, new regulations and the difficult trading environment," McLeod said in a statement. "This is the right time to find and establish a new chief executive who can oversee the recapitalisation that will take place next year, position for the implementation of the new regulatory framework and meet the new challenges the industry will face."
McLeod leaves amid an overhaul of South Canterbury that forced Hubbard to inject around a quarter of a billion dollars into the ailing company over the past three years. The company had to pay American investors some US$100 million after it was downgraded to a sub-investment grade BB+.
Last month, South Canterbury released a new prospectus after Hubbard announced the company would raise $75 million in a private placement and consider selling its farming business to bolster its balance sheet and undergo a restructure that would see him step down as chairman. There's also been speculation that Hubbard's Southbury Group would be taken public early next year.
Like its rival Marac, the Timaru-based company has moved away from property lending after it left a large hole in its financial statements due to impaired loans.
Paul is a staff writer for Good Returns based in Wellington.
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