Investors in the troubled Hubbard Management Fund - holding
around $40 million in assets - will this month start
receiving some payments on their capital, the fund's
statutory managers Grant Thornton said yesterday.
''The news of a forthcoming payout is positive for most of
the 300 investors and will come as a welcome relief,'' Grant
''We will immediately commence the implementation of the
[High] Court's directions.''
Hubbard Management Fund (HMF), once valued by deceased
millionaire financier Allan Hubbard at $83 million, has had
its fair value of identified assets set at about $40 million
by Grant Thornton, which has in the past rejected investors'
claims it was to blame for the decline in value.
Grant Thornton said the lack of any legal appeal, which
lapsed as of January 23, had cleared the way for
distributions to HMF investors''We've been working hard to
get to the point where money can finally flow to investors,''
Grant Thornton said.
It was not stated yesterday how much would be released.
Following requests for information by the ODT in December,
Grant Thornton estimated then that investors would get back
about 50c on the dollar, but stressed there was no guarantee
of that level of payment for each individual.
While investor payments so far totalled about $12 million,
equating to about 13.4c in the dollar, some investors might
not be entitled to further payments.
Grant Thornton yesterday said about 70 investors were
''unlikely to be entitled to any further payment'' as the
interim distribution they received in March 2012 exceeded
their entitlement under the final distribution order
calculation; which came from a High Court hearing.
It has been established those already having received
payments will not have any money ''clawed back''.
''In the coming weeks, we will be writing to investors to
advise the date and level of the first repayment from the
capital return pool,'' Grant Thornton said.
The HMF fund was frozen in 2010 just weeks before South
Canterbury Finance began unravelling. The latter triggered a
government bail-out of $1.75 billion, while the funds in HMF,
and also the separate Aorangi Securities and its $60 million
of disputed assets, were not covered by the government