Timaru businessman Allan Hubbard has gone to court to
challenge the decision that put him and wife into statutory
In the High Court at Timaru, the elderly couple are arguing
that the law used to place them in statutory management last
June does not apply to human beings, the process pursued was
flawed and the information used was unsound and inadequate.
They today filed judicial review proceedings at the court
challenging the decision to place them into statutory
management and seeking orders that they be removed from
The proceedings seek to remove them from being personally
subjected to statutory management.
The Hubbards, their companies Aorangi Securities and Hubbard
Management Funds, and seven charitable trusts were placed in
statutory management by the Government on June 20 last year.
Mr Hubbard was the president for life of Timaru finance
company South Canterbury Finance which later failed,
triggering a $1.7 billion government bailout.
The couple live modestly in Timaru where they have widespread
community support. They have been the subject of a book and
their supporters run a facebook page.
In March, Prime Minister John Key told a public meeting in
Timaru that "I like Allan Hubbard", and the last thing the
Government wanted to do was buy a finance company but he said
Mr Hubbard had provided a lot of loans to people who could
not pay them back.
A statement from the Hubbards today said that since they were
placed into statutory management they had sought to
co-operate with the statutory managers and the Government so
they could be removed from statutory management.
They regretted that these discussions had not been productive
and felt that, after almost 11 months of being subjected to
statutory management, they were left with few options other
than filing judicial review proceedings.
The Hubbards remained hopeful that a negotiated outcome could
be reached and they would continue to co-operate with the
Government and the statutory managers to have them removed
from statutory management.
Statutory management is a remedy of last resort used when the
affairs of a corporation cannot be adequately dealt with by
any other insolvency regime. It enables groups of companies
to be dealt with as a whole and can be used as an emergency
The Hubbards are arguing that the relevant legislation cannot
be applied to human beings, as opposed to corporate entities
A sixth statutory managers report in March said it could take
up to four years for the loans and investments of Aorangi
Securities Ltd to be realised, due to many non performing
loans and investments requiring intensive management.