26 Jun 2012

Hubbard's widow opposes transfer of assets to investors

12:48 pm on 26 June 2012

Alan Hubbard's widow is fighting to regaining control over millions of dollars her husband promised to investors in his failed finance company Aorangi.

The company's statutory manager Grant Thornton says it is disappointed Jean Hubbard has now decided to oppose the transfer of assets which would offer a substantial return to investors.

A spokesperson for Grant Thornton says this contradicts public statements from Mrs Hubbard and her late husband that their personal interests in Aorangi ranked behind the interests of their investors.

It says so far, investors have been given back about 12 cents in the dollar.

Further payouts are dependent on the outcome of legal action to determine who owns $60 million worth of investments.

Grant Thornton says the Hubbard couple put the assets into Aorangi through various entities, but the transfer of the legal title of assets was not completed in most cases.

It says the dispute will hold up repayment to investors.

The statutory manager says if the legal action taken by Mrs Hubbard is successful, the repayment will be smaller.

An investor of Aorangi Securities, Noel Macpherson, says he does not blame Mrs Hubbard for the legal action and believes it is her intention to pay back investors as soon as she can.

He says if investors don't get their full investment back it will be because of mismanagement of the statutory managers.