5 Oct 2011

Aorangi Securities investors to get further payment

7:46 pm on 5 October 2011

The statutory manager controlling the affairs of the late Allan Hubbard says investors in Aorangi Securities will get another payment of five cents in the dollar on 7 October.

Investors in Aorangi and Hubbard Management Funds are owed $96 million and have so far received 11 cents for every dollar invested.

In its eighth report to investors, statutory manager Grant Thornton says the new payment of 5c is due to the refinancing of a $5 million loan.

However, the ownership of about $60 million of assets the Hubbards intended to transfer to Aorangi remains unclear and the statutory manager did not say when that might be resolved.

Meanwhile, the return of money to investors from Hubbard Management Funds appears likely to be delayed until 2012.

Mr Thornton is going to court to get direction on how the assets can be shared fairly between investors, given there are insufficient assets to provide investors with the returns noted on their investment statements.

There is no indication when the court will consider the matter.

In the interim, the value of the fund has fallen 7% to $46 million because of world sharemarket volatility.

Mr Hubbard died and his wife Jean was injured in a car crash near Oamaru on 2 September.