Investors in former financier Alan Hubbard's private Aorangi
Securities have received a further payment, taking their
payout to 92c in the dollar, a total of $88.7 million.
Statutory manager Grant Thornton was appointed to Mr
Hubbard's Aorangi Securities in June 2010. In its 15th report
released yesterday, it said it would not proceed with any
claims against Aorangi's former directors.
Having had discussions with the Financial Markets Authority,
which was also considering a claim, Grant Thornton said
making a claim would have delayed completion of the statutory
management and added to costs.
Costs of the administration so far have been $9.89 million,
including fees and disbursements for Grant Thornton of $4.58
million and legal costs of $3.53 million.
The latest payout to investors is the 13th since October 2010
and Grant Thornton said yesterday it ''remained confident''
of returning ''most, if not all'' of the investors' capital,
but not interest.
Asset sales and cash from loans and investments in recent
months included settlement of a large investment in a group
of Mid and South Canterbury dairy farms, removal of a caveat
over a South Otago farm allowing a loan repayment, early
repayment of an interest-free loan, funds from the sale of
Fonterra shares, and loan repayments and settlements from the
Te Tua Charitable Trust, also in administration.
Te Tua had provided interest-free loans to a range of
business people, funded by Aorangi Securities.
Grant Thornton said it had collected $15 million from Te
Tua's loan book, with write-off and adjustments at $2.12
million. Some loans were still being negotiated and others
were going to court.
Investors in the other, separate, private Hubbard Management
Fund have been paid out 92c in the dollar.