Complexity delays SCF fraud case
It will take longer than expected for the Serious Fraud Office charges brought against former South Canterbury Finance directors and their chief executive to be heard because of the complexity of the case.
The post-committal hearing set down for May 28 - involving defendants Graeme Brown, Terry Hutton, Lachie McLeod, Edward Sullivan and Robert White - has been postponed by the Timaru District Court.
A new date will be set on or after July 11, in consultation with the SFO and defence teams.
Meanwhile, SCF receivers William Black and Kerryn Downey are yet to decide if they will lay a claim against the estate of the company's founder, Allan Hubbard.
Saturday's Timaru Herald carried a public notice from Timaru lawyers Bradley West to creditors and other claimants against the estate, saying they had until June 13 to make a claim.
The receivers said they were aware of the public notice and were taking legal advice with respect to it.
Hubbard statutory manager Grant Thorton has already filed claims in the High Court against the estate to protect pledged Aorangi Securities assets worth up to $60 million from other parties, including the SCF receivers.
Next week Hubbard Management Funds (HMF) investors, who are owed $82m, will be in the Christchurch High Court for direction in distributing the fund, last estimated to be worth $44.48m.
South Canterbury investors are thought to account for 225 of the 300 HMF investors.
HMF was a private investment company managed by Hubbard, which was placed in statutory management on June 20, 2010, along with his investment company Aorangi Securities and a number of charitable trusts.
The court will decide if the fund should be distributed as a pooled fund, with the fund divided equally among investors, which could return 54c in the dollar.
Alternatively the fund could be divided based on the shares investors were shown to hold on their last statement.
This approach could see some investors get back up to 92c in the dollar and others as little as 20c in the dollar.
- © Fairfax NZ News