Court to consider $60m Hubbard claim
Hubbard investors have been left in limbo as Jean Hubbard seeks through the court, later this month, to retain $60million of assets, originally promised to investors.
Grant Thornton statutory managers' 12th report into Aorangi Securities was released this morning. They were appointed in June, 2010 after the Government placed Allan and Jean Hubbard and their investment companies Aorangi and Hubbard Management Funds (HMF) into statutory management.
Some of the transactions which triggered this action were the transfer by the Hubbards of $60m of assets for the benefit of Aorangi investors as they sought to shore up the funds and release a prospectus to appease the Securities Commission. Investors are owed $96m overall.
The statutory managers reversed these transactions and are now left reliant on the court to return them. Mr Hubbard was killed in a car crash in October last year.
“The court fixture (is) to consider Mrs Hubbard’s claim that $60 million of the $96 million of Aorangi assets were never transferred to Aorangi’s ownership.
‘‘We expect the hearing will commence on October 29, 2012 in Timaru and will run for five days. Mrs Hubbard, personally and as execturix of her late husband’s estate, continues to deny that these assets were ever transferred to Aorangi. She seeks to retain ownership of the assets.’’
“If we are unsuccessful in these proceedings, this will have a severe impact on returns to Aorangi investors.”
So far investors have been paid 15cents in the dollar of their capital , totalling $14.5m, while $5.6m has been charged by the statutory managers to administer the fund. They expect to recover $39m from the loans they currently manage.
A dispute has also arisen between the Hubbards’ investment funds. HMF is an investor of Aorangi. Aorangi’s financial statements record that to be worth $470,000 whereas HMF statement record that investment to be worth $3.6m.
The next report was due in January but this was dependant on when the judgement from the court proceedings later this month was released.
The Timaru Herald