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

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news