Failed financier Allan Hubbard's supporters have hit back at highly-critical reports by statutory managers and revealed more details of the financial structure of Aorangi Securities.Stand by Hubbard spokesman Kieran Trass said he had written the rebuttal
Failed financier Allan Hubbard's supporters have hit back at highly-critical reports by statutory managers and revealed more details of the financial structure of Aorangi Securities.
Stand by Hubbard spokesman Kieran Trass said he had written the rebuttal to combat critical reports by statutory manager Grant Thornton.
"Our picture is extremely different from theirs and you've got to ask why," Mr Trass said.
The report includes a purported breakdown of Aorangi assets – with $95m of investors' money backed by $95m of loans and $51m of Mr Hubbard's equity tied up with Te Tua Trust and various commercial loans.
The level of detail in Mr Trass' report is considerable – and includes a $3m bank balance held by Aorangi that he said Grant Thornton have missed.
Mr Trass said Mr Hubbard provided him with that figure: "That came from Allan himself, and he's uncategorical about that."
Mr Trass said he relied on "various and useful sources" to compile his report, including a glowing PriceWaterhouseCoopers assessment of Hubbard Management Funds.
He said legal advice prevented him from providing NBR with a copy of the PWC report.
The report, however, doesn't entirely defend Aorangi's failure to publish a prospectus, as required under the Securities Act.
"The fact is that Aorangi has never solicited funds from the general public. Funds were only received from professional investors and business associates so, arguably, there was no requirement to issue a prospectus," the report says.
