Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Court clears way for distribution to Hubbard investors

Media release

5 December 2012

Court clears way for distribution to HMF investors

The High Court yesterday released its final decision on how returns to Hubbard Management Funds (HMF) investors will be calculated and initial distributions are likely to occur in the first quarter of 2013.

“It has been a complex set of issues, so we are very pleased to have the methodology sorted,” said the Statutory Managers.

“To calculate the distributions, HMF will be effectively split into two pools: the “capital pool” is the amount required to repay all investors their original money invested to the extent that they have not already made withdrawals from HMF. As directed by the Court, capital gains, interest and dividends that were reported on investor statements will not be considered as part of the capital pool.”

The “surplus pool” is the amount available from realisations of assets after paying all capital amounts due. This will be allocated under a formula approved by the Court.

The capital pool payments will be made first and once these have been made, payments from the surplus pool will commence.

The earlier interim distribution previously approved by the Court meant that when the Court issued its interim order in June 2012, some investors had received more than the original capital they had invested in HMF.

The Courts’ “claw back” of these overpayments which resulted from the June 2012 order has now been removed. The Statutory Managers will no longer be required to seek repayments from investors previously impacted.

“Payments will be made from the realisation of assets and will be made proportionately over time. We will need to retain sufficient funds to honour HMF’s contractual commitments to private equity funds and pay costs,” said the Statutory Managers.

“The sales process will take a considerable period of time to complete. We have previously noted that many of the investments are illiquid or in long term private equity funds. We will not sell assets on a “fire sale” basis. We need to maximise the recovery for investors. It could take at least two years to repay the capital pool fully. Surplus pool payments will not commence before all the capital pool is repaid.

“We will be unable to finalise each investor’s entitlements until we have verified all adjustments arising from the cash deposit and withdrawal confirmations from investors. The period for these confirmations closed last night and a large number of responses have arrived over the last two days. We will write to all investors by the end of next week setting out their final entitlements. There will be some investors who have made more withdrawals from HMF than their deposits. These investors will not receive any further capital payments. Under the Court approved formula, some investors may not receive any payment from the surplus pool.

“The only other issue that may arise is if an investor chooses to appeal the decision of Justice Chisholm. The appeal period expires on 23 January 2013. Should an appeal be lodged, all distributions will be delayed until the appeal is resolved. This could take the remainder of 2013,” concluded the Statutory Managers.

- ends –

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news