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

 

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>


Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news