An insolvency specialist says Hanover Finance should have withdrawn its television advertising when problems first became apparent.
Hanover Finance announced on Wednesday it has frozen investments and repayments totalling $554 million, pending finalisation of a restructuring proposal.
Gerry Rea Associates specialises in insolvency.
Principal Gerry Rea says he's not surprised by Hanover's announcement, but the company should have acted sooner - particulary in relation to its television advertising campaign, which had promised to protect deposits 'whatever the economic weather'.
