WELLINGTON, New Zealand--One of New Zealand's largest non-bank lenders, South Canterbury Finance, collapsed Tuesday owing about 1.6 billion New Zealand dollars (1.13 billion US) to 35,000 depositors, officials said.

The company, which began as a rural lender but had diversified into more exotic investments, said it was going into receivership after failing to find new capital in time for an August 31 deadline set by its creditors.

"Receivership is disappointing and we were working very hard up to the last minute to avoid that outcome," South Canterbury chief executive Sandy Maier in a statement.

Prime Minister John Key said the government wanted to minimize the impact of the company's difficulties on the wider economy.

Acting treasury secretary Gabriel Makhlouf said all South Canterbury depositors were covered by a government guarantee on retail deposits introduced in late 2008 during the global financial crisis.

"When an up-to-date register of debt security holders is available, the Crown and the Trustee (the receiver) will arrange prompt payment to everyone on the register," Makhlouf said in a statement.

The benchmark NZX-50 share index was down 14.9 points, or 0.5 percent, at 3,021.9 about midday (0000 GMT), while the New Zealand dollar fell 0.66 US cents to 70.21 cents.