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

 

Statutory managers end Hubbard's Aorangi with 99% recovery

Statutory manager wraps up Hubbard's Aorangi with 99% recovery

By Paul McBeth

Sept. 22 (BusinessDesk) - The statutory managers of Aorangi Securities, one of the failed vehicles in the stable formerly run by Timaru businessman Allan Hubbard, has been wrapped up with just above 99 percent recovered for the 400 or so investors.

About $101.2 million, or 99.037 cents in the dollar, has been repaid to Aorangi investors, the Grant Thornton statutory managers said in a statement, concluding their four-year administration of the fund. Of the $2.6 million in funds on hand at the time of the appointment, and $109.7 million generated from asset sales, interest and a settlement with Jean Hubbard, the widow and estate executor of Allan Hubbard, some $5.1 million was paid out in fees to Grant Thornton, $3.8 million in legal costs, $547,000 in other third party disbursements, and $1.4 million in GST.

"While we have signalled for some time that investors in Aorangi were likely to receive most, if not all, of their capital back, it is never-the-less pleasing to have reached this conclusion," the managers said. "Our approach through the statutory management was to return funds to investors as quickly as possible without undertaking asset fire sales."

Former Commerce Minister Simon Power appointed the statutory managers of various Hubbard entities, though controversially left out Allan Hubbard's primary entity, South Canterbury Finance.

SCF ultimately cost the taxpayer an upfront bill of $1.7 billion when it failed and called on a government deposit guarantee scheme created to protect investors during a spate of finance company collapses in the late 2000s. Former directors and an executive of SCF stood trial for an alleged fraud at the lender, and are awaiting a verdict.

Hubbard died in a car crash in 2011 facing fraud charges relating to his management of Aorangi.

The statutory managers also wrapped up their administration of Te Tua and other charitable trusts, of which they were paid $910,000, and incurred legal fees of $682,000, $22,000 in other third party distributions, and GST of $238,000.

The managers said regular reviews by the Ministry of Business, Innovation and Employment of the costs didn't raise any issues.

Over the course of the four-year administration, the managers sold 30 assets, made up of farms and commercial property, worth some $420 million, that Aorangi had a stake in, improved processes at more than 50 entities to lift the fund's return, recovered $24.3 million in loan repayments, realised more than $17 million of Te Tua loans, and negotiated the settlement with Jean Hubbard in what was at times an acrimonious battle over $60 million of disputed assets.

The administration of the Hubbard Management Fund is still ongoing, and had repaid 50 cents in the dollar to about two-thirds of the 300 investors in the fund who will get all of their capital returned, according to its last report in August. The manager will decide how to distribute any surplus once the initial pool is settled.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>

ALSO:

Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>

ALSO:

MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>

ALSO:


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>

ALSO:

Mediaworks: Reaches Agreement To Sell TV Operations To Discovery, Inc.

New Zealand’s largest independent commercial broadcaster MediaWorks and the global leader of real-life entertainment Discovery Inc. (“Discovery”) are pleased to announce they have reached a binding agreement regarding the sale of MediaWorks’ ... More>>

ALSO:

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>

ALSO:

NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>

ALSO:

Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>

ALSO:

SAFE: Live Export Ship Carrying 5,800 New Zealand Cows Goes Missing In East China Sea

Livestock carrier Gulf Livestock 1 sent a distress signal at 4:45am NZT yesterday in the East China Sea. The area is affected by Typhoon Maysak. At 4pm a patrol plane spotted a lifeboat - with no people in it - and a man in lifejacket nearby. The ship ... More>>

ALSO:

FMA: Kiwisaver Fees Don't Match Performance

The Financial Markets Authority (FMA) today published an independent report into the passive and active investment management styles [i] used by KiwiSaver providers. The FMA commissioned MyFiduciary to test the extent that KiwiSaver providers were ... More>>