Asset u-turn seen as 'another bungle'
Investors were yesterday absorbing the news Jean Hubbard will contest $60 million worth of assets originally promised to them.
Outside the Timaru High Court yesterday around a dozen investors gathered to talk. Noel Macpherson said it was too soon to say how he felt about Mrs Hubbard contesting the assets.
"My initial reaction is, this is another part of the bungling mis-management [since statutory management] that started two years ago. The one constant has been the lack of accurate information at every turn and not knowing who has what agenda."
Investor John Rodger said everyone was "disappointed with the decision to contest" the assets.
An investor, who didn't want to be named, brought with her to court a letter from Allan Hubbard dated June 29, 2011, which started "you will never lose capital, as I would first of all have to lose $50 million".
"The statutory management was illegal and unnecessary and I am afraid it looks like some Government misdirected plan," Mr Hubbard's signed letter stated.
She had been told by statutory managers to sell her house to get money to live off. "If investors have to lose their houses why shouldn't Mrs Hubbard lose hers?"
Another investor, who wanted to remain anonymous, quoted what the Hubbards had said to him: "I have pledged to cover all investors' funds first and foremost giving them first priority and ahead of any family."
The investor said that "Jean Hubbard nodded her head and confirmed her total support with the statement. I hope she remembers this discussion in her future negotiations in terms of court challenges to our capital."
The Timaru Herald