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

 

Hubbard investors set for distributions early next year

Hubbard investors set for distributions early next year

Dec. 5 (BusinessDesk) - Investors in Hubbard Management Funds are likely to get their initial distributions in the first three months of next year after the High Court settled on how to split the funds.

Justice Lester Chisholm has directed statutory managers Trevor Thornton, Richard Simpson and Graeme McGlinn of Grant Thornton to split HMF into two pools, the first being the principal amount owed to investors, excluding capital gains, interest and dividends that were reported on investor statements.

The second pool is the amount available from the sale of the fund's assets based on a formula set by the court, according to a statement by the statutory managers. Once the capital pool is repaid, the surplus pool payments can be made.

"We will not sell assets on a 'fire sale' basis. We need to maximise the recovery for investors," the statutory managers said. "It could take at least two years to repay the capital pool fully."

Investors have until Jan. 23 to appeal the decision, and if an appeal is lodged, all distributions will be delayed until the action is resolved.

The court-ordered claw-back of overpayments in the interim distribution has been removed, and the statutory managers won't seek repayments from investors, they said.

Former Commerce Minister Simon Power appointed the statutory managers of deceased Timaru financier Allan Hubbard and his wife Jean, and various entities, in mid-2010. The HMF entity emerged from their investigations into Aorangi Securities, another Hubbard vehicle.

The appointment controversially left out Hubbard's primary entity, South Canterbury Finance, which ultimately cost the taxpayer an upfront bill of $1.7 billion when it failed and called on the government deposit guarantee scheme.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

'Irregular Accounting': Voluntary Suspension Of Fuji Xerox Govt Contracting

This suspension gives the Ministry of Business, Innovation, and Employment time to understand the full implications of the report from FUJIFILM Holdings into irregular accounting practices at FXNZ. More>>

ALSO:

MPI: Cow Disease Detected In NZ For First Time

MPI is responding to the detection of the cattle disease Mycoplasma bovis in a dairy herd in South Canterbury... The disease is commonly found in cattle globally, including in Australia, but it’s the first detection of it in New Zealand. More>>

South Island Flooding: Focus Moves To Recovery

As water recedes throughout flood-impacted areas of the South Island, Minister of Civil Defence Nathan Guy has praised the efforts of those who were involved in the response to the flooding... More>>

ALSO:

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. More>>

ALSO: