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 Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news