Aorangi investors can expect money back in full
The statutory managers for the late Allan Hubbard's frozen Aorangi Securities have cut a deal with his widow Jean over some $60 million of disputed assets that will return most, if not all, of Aorangi investors' capital over time.
Grant Thornton's Richard Simpson, Trevor Thornton and Graeme McGlinn reached a confidential settlement with Jean Hubbard over shares and loans in farm-owning companies, partnerships and commercial entities introduced to Aorangi by the Hubbards between April 2009 and March 2010.
Investors will be repaid progressively as funds become available.
"Settlement is expected to return most, if not all, of the Aorangi Investors' capital over time," the managers say in a statement. "The process will involve the cooperative realisation of assets, some of which are due to settle during June 2013."
The ownership of the assets was disputed, with the managers claiming they were Aorangi's and Jean Hubbard saying they belonged to her late husband's estate.
The court case was postponed at the statutory managers' request after they found additional documents in storage relating to the case.
The deal means planned court proceedings for May 20 have been discontinued.
The courtroom stoush was seen as key to clawing back funds for the Aorangi investors, with the statutory managers saying in February it would decide whether most of the $96 million was returned, or just a third of the funds.
At the date of the February update, the Aorangi investors had recovered 15 cents in the dollar, or $14.5 million.
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.
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