Allan Hubbard's statement, issued overnight, on the government action:"I am writing to you following recent action by a Government department."I have operated Aorangi Security as a mortgage company for over 30 years and during that entire period
Allan Hubbard's statement, issued overnight, on the government action:
"I am writing to you following recent action by a Government department.
"I have operated Aorangi Security as a mortgage company for over 30 years and during that entire period interest has been paid quarterly and the clients have suffered no loss of capital and have a prompt return of capital.
"The current position of Aoarangi is approximately as follows:
"Mortgage and loans owing to Aoarangi: $126 million
"Cash at bank: $2 million.
"This adds to $128 million.
"Client desposits $88 million which means a surplus of $40 million.
"The $40 million surplus belongs to myself and family and all our equity has been subordinated to client interest, ie, the Hubbard family stands any loss before clients do.
"The Crown seems to believe that your capital is at risk under my management and have appointed a statutory manager whose job is to realise all the loans and repay you your capital. This will take time as it is not possible for borrowers to repay loans at short notice.
"There are sufficent funds on hand to pay interest due at June 30.
"If for any reason you do not receive your capital back in full and provided it is within my resources I will meet any shortfall.
"I extend my personal apology for what has happened.
"I am sorry that this action was taken by a government offical with little consultation with myself and can only conclude that the government official has been misguided in his action.
"In the past month I have been working on finding a solution to South Canterbury Finance affairs and hope to arrange an agreement with an overseas company, subject to confirmation by June 30 to inject a large amount of capital which would place South Canterbury Finance in a secure position for the future.
"As you will have read in the media in February last I introduced $150 million of assets into South Canterbury Finance to ensure that there was an equity for preference shareholders and that they suffered no loss.
"I don't believe in the history of New Zealand that any person has acted more honourably than myself."
