Hubbard's ‘cash on hand’ doesn’t exist, say statutory managers
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Statutory managers appointed to the affairs of the late Allan Hubbard say non-existent cash is part of their claim to the courts that Hubbard Management Funds operated as a pool.
Statutory mangers Grant Thornton were appointed to Aorangi Securities and HMF on June 20, 2010.
In a letter to investors following the death of Mr Hubbard, statutory managers said market fluctuations had reduced the value of HMF to $46 million, from the $49.3 million recorded at their last report.
Confusion has reigned over whether HMF operated as individual portfolios or a pool, and part of the claim by statutory managers the fund was the latter concerned how to deal with statements given by Mr Hubbard to investors saying their accounts had significant amounts of cash.
“In the past it seems Mr Hubbard used the cash labeled on statements as ‘cash on hand’ or ‘uninvested funds’ to fund other share purchases. We are told he had a view that money in the bank was not working so he invested it,” the letter said.
Aorangi appoints liquidators
Investors in Aorangi could expect a 5c payment on October 7, but statutory managers had bad news for investors with word that a property development owing $750,000 to Aorangi and $2.5 million to Mr Hubbard had been placed into liquidation.
Statutory managers said action was underway to place a related party of the borrower into liquidation as there was a “lack of valid security to Aorangi” despite $2.5 million in advances.
More court action, this time over who controlled $60 million of assets Mr Hubbard had pledged to Aorangi investors, would also complicate payouts.
“The availabilty of those assets to Aorangi remains a significant factor in the ultimate return to investors and we continue our work to determine the availability of those assets,” the letter said.
Matt Nippert
Wed, 05 Oct 2011
Wed, 05 Oct 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Hubbard's ‘cash on hand’ doesn’t exist, say statutory managers
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