Cost of Hubbard’s management nudges $5 million
One year into statutory management Grant Thornton has clocked up $2.9 million in fees.
Total fees charged on the administration of Allan Hubbard’s assets have climbed to $4.9 million, latest reports from statutory managers reveal.
Included in the costs for Aorangi Securities, Te Tua Trust and Hubbard Management Funds is $2.87 million to statutory managers from Grant Thornton, $1.15 million in legal costs, $276,303 in “other disbursements and $609,477 in GST.
It is understood the government has been paying some of the costs associated with the statutory management, which it will then claim back from asset sales.
Mr Hubbard’s legal fees to Russell McVeagh have reportedly passed $2.5 million.
Grant Thornton said there had been some confusion over the payment of Mr and Mrs Hubbard’s legal fees.“We approached the Courts for guidance on whether it was appropriate for us to pay the legal costs, and if so, what money should be used.
“The Courts came back saying that costs should be paid, but it was neither the liability of the statutory managers or the government, and that it should come from Mr and Mrs Hubbard’s personal assets. We are following the Court’s direction,” the statutory managers said in a statement today.
Duncan Bridgeman
Fri, 01 Jul 2011
Fri, 01 Jul 2011
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Cost of Hubbard’s management nudges $5 million
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