Hubbard investors must repay $3m
More than $3 million paid out to investors in Hubbard Management Funds (HMF) will be clawed back by statutory managers.
Up to 50 investors in the late Allan Hubbard's failed investment vehicle will have to pay back they money which was paid out, on court orders, as an interim distribution in March.
Statutory managers Grant Thornton have received direction on how to allocate the $44 million fund to investors following a High Court decision.
The court ruled that cash invested less any cash withdrawals are the first call on the fund, and that any remaining assets are to be distributed as a return on each investor's position reflecting the returns of each year.
This ignores the returns and capital growth that were shown on the statements provided to investors by Allan Hubbard.
The statutory managers, who had sought the court ruling, were now reconstructing each investor's position under the court-approved method and will contact all investors to confirm accuracy of the information to be used for the calculations.
Further distributions would be made once this was completed for all investors.
The decision may yet be appealed by some investors, the statutory managers said, adding that this would see distributions delayed while appeals were dealt with.