Hubbard investors must repay $3m

ALAN WOOD
Last updated 14:27 03/07/2012

Relevant offers

Money

New home loans hit fresh high in May, but high LVR loans dropping Kiwis are forking out thousands for sick pets to undergo "human" operations Gold Coast-style intensification will solve Auckland housing crisis, says economist South Canterbury woman gives IRD scammer a serve Don't fall for 'shopper's exhilaration' and other marketing-induced emotions Powerful NZ dame: UK ties to become deeper, stronger and more significant Small retailers hurt as Auckland CDB rents soar Eric Watson: 'Brexit could provide a boon for Kiwi business' Kiwi travellers snap up British currency after pound plummets on Brexit KiwiSavers face nervous wait to see Brexit damage

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.

Ad Feedback

- BusinessDay.co.nz

Special offers

Featured Promotions

Sponsored Content