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

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news