The latest receivers' report on Allan Hubbard-controlled Southbury Group has little in the way of good news for out-of-pocket taxpayers hoping to claw money back from failed South Canterbury Finance.
The latest receivers’ report on Allan Hubbard-controlled Southbury Group has little in the way of good news for out-of-pocket taxpayers hoping to claw money back from failed South Canterbury Finance.
Just $2 million has been recouped from an almost $190 million debt owed to South Canterbury by failed Southbury Group, according to the second receivers’ report.
Southbury Group owns Southbury Corporation, which in turn, holds shares in South Canterbury Finance – founded and controlled by the late Mr Hubbard. Taxpayers have spent $1.775 billion on South Canterbury under the Crown Deposit Guarantee scheme.
McGrath Nicol, which was appointed as Southbury receiver in November 2010, has released its second six-monthly report on the administration – saying while they will try to keep clawing back money, it seems extremely unlikely enough will be reclaimed to repay unsecured creditors.
Since early May, just $2 million has been paid back, after Southbury Group was repaid the $2.3 million it lent to Commtest Instruments.
Separately, the receivers noted that concerns had been raised over a number of Southbury transactions.
"We are aware of a number of concerns raised by investors and other parties with respect to certain transactions among SGL, SCL and South Canterbury Finance prior to our appointment,” they said, adding these were being investigated and any breaches reported to the authorities.
