Much-heralded court action by the Financial Markets Authority against Hanover Finance appears stalled.
On December 15 the FMA announced it would be filing civil proceeding against the directors and promoters of Hanover Finance.
The regulator said their case would focus on the finance company’s 2007 prospectus, during a period where $35 million was raised from investors.
Media reports said Christmas leave for many staff at the FMA had been canceled to push through the paperwork required for court action against Hanover.
The announcement followed building pressure against the FMA to resolve its investigation into the finance company after a December 2010 freezing order obtained by the regulator against Hanover director and co-owner Mark Hotchin stretched into its 12th month..
But, seven weeks on from the announcement court action would be filed, the FMA have no developments – or even a timeframe – to report.
A spokesman for the FMA told the National Business Review there was no update to the Hanover case, and nothing was likely to be made public in the next fortnight.
The Serious Fraud Office is running a parallel investigation into Hanover. With the laying of charges against the directors of Rockforte Finance last week, the Hanover probe is the last finance company probe still on the SFO’s books.
Hanover and United Finance froze $554 million of investor funds in August 2008. The assets and loans were later transferred to Allied Farmers with investors swapping their stricken fixed interest debentures with shares in the small Hawera-based firm.
Those shares have plummeted in value with Allied Farmers writing down the value of the assets acquired from $396 million to $93 million.
Matt Nippert
Fri, 03 Feb 2012
Fri, 03 Feb 2012
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FMA drags chain on Hanover
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