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Repayment to investors in Hubbard vehicle Aorangi reaches 92 cents in the dollar

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.


Comments and questions

What a crock this whole Statutory Management has been. Firstly Simon Power should have been better informed and also had the balls to tell McPherson from the Companies Office to sod off instead of following his recommendations and agreeing to the Statutory Management

Secondly the Statutory Managers were suspect - don't forget they gave the $60M odd back to the Hubbards - it wasn't the Hubbards who took it out - in fact the Hubbards didn't want the money.

So the company should never have been placed in Statutory management as it was never at risk

Now after Grant Thornton taking $10M plus in fees they are crowing about what a great job they have done - getting 92 cents instead of 35 cents - what a load of bollocks
NBR needs to be less complimentary to Grant Thornton - based on the facts and the fact that Grant Thornton bagged the Hubbards and basically inferred the Hubbards had lost most of the funds through incompetence - Mmmm I think I kno who was incompetent and it wasn't the Hubbards in this instance

The Doctor - I Agree.
The Canterbury couple that "put Thornton's right" because they had kept all their documentation deserve the $10m, not Thornton's
And, didn't Mrs Hubbard want the money to go back to Aorangi investors?
Don't believe all you read.

Correct and as the court documents show she placed that formally in the document- she wanted the money OUT of the control of these Managers so the investors could have it back......

These Managers knew at the time of transferring the $60million that Aorangi was solvent which proved all in sundry had cocked up big time but no one in Government acknowledged the mistake and on it goes- the gravy train.