Full payout closer for Aorangi investors

CATHERINE HARRIS
Last updated 12:53 21/02/2014
Allan Hubbard
JOHN BISSET/Fairfax NZ
MONEY MAN: South Canterbury financier Allan Hubbard.

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Investors in Allan Hubbard's Aorangi Securities have received 92 cents in the dollar and the statutory managers believe they will recover most if not all of the $98 million owed to investors.

The managers, Grant Thornton, also said Aorangi was nearing release from statutory control.

Grant Thornton said in a statement that since an "amicable settlement" was reached with Hubbard's widow Jean in April last year, 77c in the dollar had been distributed to investors, taking the total to 92c.

"If the court case had proceeded and been lost, Aorangi investors would have only received an estimated return of 35c in the dollar," the statement said.

Aorangi Securities was frozen after Hubbard's South Canterbury Finance collapsed in 2010.

Investors in South Canterbury were bailed out by the Government, but Aorangi investors were largely out of pocket until last April when the statutory managers cut a deal with Hubbard's widow over $60 million in assets.

She had previously argued that they belonged to her late husband's estate.

Grant Thornton said the latest return of investor capital was "an excellent outcome for investors, particularly considering the litigation risk".

It had been estimated in 2010 that it would take three to four years to return the capital.

The statutory managers said that when most if not all the capital had been returned to investors, control of Aorangi would be passed back to the directors.

Investors are due to get another report from the statutory managers in July.

The governor-general this week signed an order in council that would release another Hubbard entity, Temple Bar Family Trust, from statutory management on March 20.

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- © Fairfax NZ News

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