Investors hit hard by wait
The financial fallout is hitting home for distressed Hubbard investors, who are being forced to sell off their assets.
Just over two years since their investments were frozen some investors have had to move into their children's homes, some have died and some are now very ill.
Their plight was outlined yesterday by investor spokeman, Fairlie farmer Noel Macpherson, as Grant Thornton statutory managers released their 12th report into Aorangi Securities and Hubbard Management Funds (HMF).
The managers were appointed in June 2010, after the Government put Allan and Jean Hubbard and the two investment companies into statutory management.
Mr Macpherson, who is an investor in both companies, said the wait continued for $178 million owed to investors.
Both funds were bound up in court action. Mrs Hubbard sought control of $60m promised to Aorangi investors by Mr Hubbard. The matter will be heard in Timaru District Court on October 29.
The court had released a decision on the HMF distribution but that was still open to appeal, which could reduce the fund already said to be worth half of the $82m owed.
"It is very frustrating. We won't know what is happening until after the court action," Mr Macpherson said.
"There are some very distressed investors. Some investors have had to sell their houses, or move into their childrens' homes. Quite a few have died. Quite a few are very ill, it has been over two years since they have seen an interest payment."
Investors wanted Mr Hubbard's original promises to be honoured, he said.
Investors were concerned about the court case. "The fact is, investors gave their money to Mr Hubbard with the personal guarantee he would have to lose $60m before they did, that he and his family interests would come second to the investors.
"Now a different slant has been put on that." He did not think they had been naive to invest with Mr Hubbard without a prospectus or traditional investment paperwork. "These people have had a long association with Allan Hubbard and he had a good record as a private investment."
The administration had cost $10.85m, which was upsetting to investors, he said.
"Basically they know that is their money, administering what should never have happened.
"This could have all been handled much better, it is moving very slow and the real people that are affected, the investors, have been forgotten about."
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