20 Sep 2010

More Hubbard trusts put into statutory management

8:38 pm on 20 September 2010

The Government has placed another two companies related to Timaru businessman Allan Hubbard in statutory management.

The move was made on the recommendation of the Securities Commission and is a result of ongoing investigations by statutory mangers into Aorangi Securities Limited and seven charitable trusts.

Hubbard Churcher Trust Management and Forresters Nominee Company were put into statutory management on Monday afternoon to protect investors.

Both companies hold assets connected with Hubbard Management Funds which has 300 investors.

Prime Minister John Key says to the best of the Government's knowledge, all the Hubbard-related enterprises are now in receivership or statutory management.

However, Mr Key says the Government has not always received straight answers from Mr Hubbard about all of the entites.

In June, Mr Hubbard and his wife Margaret were placed under statutory management, along with Aorangi Securities and several other trusts.

South Canterbury Finance, owned by Mr Hubbard, was put in receivership earlier in September owing about $1.6 billion to 35,000 investors.

Investors will get their money back under the Government's retail deposit guarantee scheme.