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

 


The Court will decide if Aorangi investors get the cash

Press release
4 February 2013
The Court will decide if Aorangi investors get the cash

The ownership of the “introduced assets” is the most important outstanding issue to be resolved in order to return a significant percentage of capital to Aorangi investors.

The statutory managers believe Aorangi investors could get almost all of their investment capital back if the managers are successful in the Court hearing set down for 20 May 2013 in the Timaru High Court. If not, then Aorangi investors will only get around 35 cents in the dollar, including the 15 cents already paid out which is just $34 million in total

During the period from April 2009 to March 2010, Mr and Mrs Hubbard introduced assets into Aorangi. They did so in their personal capacities, as trustees of various trusts and as company shareholders and directors. Those assets were in the form of shares and loans in farm owning companies, partnerships and commercial entities. There are some 34 separate entities involved with the assets having an estimated current value of approximately $60 million.

“We are now at the point where we have completed a full overview of the history of Aorangi and of its failure. As this matter is before the Court we are unable to provide investors with much of the detail of our case. However, our legal advisers believe our case is strong. We have provided the High Court with affidavits which outline Aorangi’s history and our conclusions, based on the evidence we have found, as to why assets were introduced in 2009 and 2010”.

“To further protect Aorangi investors we have also asked the Court to rule that Mr and Mrs Hubbard are only paid for the assets they introduced after the claims of investors have been met,” say the Grant Thornton statutory managers in their 13th Report to investors.

“We have made progress in ‘cashing up’ many of these investments and await the outcome of the Court hearing but there are still some loans remaining to secure on behalf of investors, including loans to Te Tua Charitable Trust and other South Island farming interests, and $61.5m in capital from the “introduced assets”. Negotiations or Court actions to recover the loans are well advanced.

“We are optimistic that investors could receive most of their capital back subject to the 20 May Court decision going the way of investors,’ concluded the statutory managers.


- ends –
Attached: Thirteenth Statutory Managers’ Report - Aorangi Securities

http://img.scoop.co.nz/media/pdfs/1302/Thirteenth_Aorangi_Report__Final_31_January_2013.pdf


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news