Hot Topic
Hawke’s Bay
Repayments to investors in Aorangi Securities, one of the failed vehicles in the stable formerly run by Timaru businessman Allan Hubbard, have climbed to 92 cents in the dollar, say the statutory managers, Grant Thornton.
An amicable settlement reached last April with Hubbard's widow, Jean, had saved investors the potential for extended litigation and might have limited returns to investors to an estimated 35 cents in the dollar, whereas they were now likely to receive full reimbursement, the firm said in a statement accompanying its 15th report on Aorangi.
The report includes detail on the related Te Tua Charitable Trust, and shows that the statutory managers' fees and payments for legal advice relating to Aorangi and Te Tua to date total $10.7 million.
Progress to date was consistent with the expectation at the time of the statutory management being implemented in 2010 that realisations for investors would take three to four years.
In the last six months, a significant investment in a group of mid and South Canterbury farms had been concluded, along with a number of other sales and early repayments of loans.
Former Commerce Minister Simon Power appointed the statutory managers of various Hubbard entities, though controversially left out Allan Hubbard's primary entity, South Canterbury Finance.
SCF ultimately cost the taxpayer an upfront bill of $1.7 billion when it failed and called on a government deposit guarantee scheme created to protect investors during a spate of finance company collapses in the late 2000s. Former directors and an executive of SCF will stand trial for an alleged fraud at the lender next month.
Hubbard died in a car crash in 2011 facing fraud charges relating to his management of Aorangi.
(BusinessDesk)
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Repayment to investors in Hubbard vehicle Aorangi reaches 92 cents in the dollar
35917