Hubbard managers tread carefully in 'uncharted waters'
Grant Thornton expects Aorangi Securities and Hubbard Management Funds to remain locked up.
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Confusion reigns over the vexed question of whether Jean Hubbard should remain in statutory management after the death of her husband Allan.
Mr Hubbard and his wife, alongside investment entities Aorangi Securities, Hubbard Management Funds and a number of trusts, were placed into the statutory management of Grant Thornton last June. Cabinet is discussing the matter today and more details are expected to emerge during the post-cabinet press conference this afternoon.
John Durning, a spokesman for Grant Thornton, says the initial step to place the Hubbard’s into a financial straightjacket was unprecedented, and the death of the financier further complicated matters.
“We're in uncharted waters at the moment,” he says.
Mr Durning says he expects parts of Grant Thornton's work will continue, but there was the possibility that events over the weekend would wind back their presence in Timaru.
“The statutory management of HMF and Aorangi will continue as normal, but it’s still to early to say what will happen to the statutory management of Mr and Mrs Hubbard,” he says.
It would appear likely Mrs Hubbard will be released from statutory management in the coming weeks, although the novelty of the case gives little precedent and is leading all parties to move very cautiously.
The Timaru accountant and financier was charged with 50 counts of fraud on June 20 after a year-long investigation by the SFO.
Mr and Mrs Hubbard, their companies Aorangi Securities and Hubbard Management Funds, and several charitable trusts were placed in statutory management by the Government on June 20 last year owing millions.
The SFO charges related to theft by a person in a special relationship, false statement by a promoter and false accounting. Mr Hubbard's lawyers had indicated the 83-year-old would fight the charges.
Matt Nippert
Mon, 05 Sep 2011
Mon, 05 Sep 2011
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Hubbard managers tread carefully in 'uncharted waters'
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