Uncertainty continues for Aorangi Investors

Press release

2 October 2012

Uncertainty continues for Aorangi Investors

The 12th report by the Grant Thornton statutory managers to Aorangi Securities Limited investors, highlights how complex and difficult the task of returning money to investors has become. Aorangi is one of the funds caught up in the Hubbard financial collapse.

“The court fixture to consider Mrs Hubbard’s claim that $60 million of the $96 million of Aorangi assets were never transferred to Aorangi’s ownership and are therefore hers personally and for her late husband’s estate, is expected to commence soon,” say the statutory managers.

“If we are unsuccessful in these proceedings, this will have a severe impact on returns to Aorangi investors.”

The 12th report also details eight or more loans either in dispute or at risk that the managers are actively negotiating to recover.

“We estimate ultimate recoveries of third party loans at approximately $39 million. Recoveries are dependent on market conditions and in a number of instances on the outcome of legal proceedings.

There are insufficient funds available to us to make a further capital payment to investors at this time,” confirmed the statutory managers.”

The statutory managers will be reporting next to investors at the end of January 2013.

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