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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news