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

 


Aorangi stoush with Jean Hubbard key to size of return

Aorangi stoush with Jean Hubbard key to size of return to investors, managers say

Feb. 4 (BusinessDesk) – A Timaru High Court hearing set for May on whether Aorangi Securities or the Hubbards own $60 million of disputed assets is key to whether investors in the failed group get most of their money back or only a third of the funds, the statutory managers say.

The Aorangi investors have so far received 15 cents in the dollar, or $14.5 million of the $96 million owed.

If the High Court rules the ‘introduced assets’ belong to Aorangi, the investors could get “almost all of their investment capital back." If Jean Hubbard wins, the total payout may be 35 cents in the dollar, or $34 million, statutory managers Richard Simpson, Trevor Thornton and Graeme McGlinn of Grant Thornton say in their 13th report.

The introduced assets were shares and loans in farm owning companies, partnerships and commercial entities introduced to Aorangi by the late businessman Allan Hubbard and wife Jean between April 2009 and March 2010. Jean Hubbard claims the assets belong to her and her husband’s estate.

As a result of the pending court hearing, funds from the sale of any introduced assets are being held in escrow pending the outcome.

By the court’s direction, Jean Hubbard’s legal costs are being at least partly funded by Aorangi itself and the latest managers’ report says that has amounted to $85,000. The money must be repaid if the managers win, they say.

The managers have recovered some $20 million of the $40 million in estimated gross recoveries of Aorangi’s third-party loans.

Grant Thornton’s fees for the administration of Aorangi rose to $3.6 million as at Dec. 21, bringing total costs to $7.1 million including legal advice. That’s up from the $2.99 million accrued to Grant Thornton and total costs of $5.7 million as at the end of August last year.

Costs related to the Te Tua Charitable Trust were $680,140 for Grant Thornton out of a total $1.1 million.

The court case is set for May 20 having been postponed last year at the request of Grant Thornton after it found additional documents in storage related to the case.

Former Commerce Minister Simon Power appointed Grant Thornton as statutory managers of the Hubbards and various entities in mid-2010.

(BusinessDesk)

© 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