Accounts not complete for Southbury Group

The receivers of the Allan Hubbard family-controlled Southbury Group Ltd say accounts for the company prepared by the Timaru businessman were incomplete and unreliable.

The first receivers' report on two Hubbard-controlled companies, Southbury Group Ltd (SGL) and Southbury Corporation Ltd (SCL), which are also caught up in the South Canterbury Finance collapse, said draft accounts were prepared by Mr Hubbard for SGL for the year to June 30, 2010.

"However, upon examination, these accounts were assessed as being incomplete and unreliable," receivers McGrathNicol said in a statement.

"At the receiver's request, Allan Hubbard is working (with the assistance of HC Partners Ltd, chartered accountants) to provide accounts as at the date of receivership, November 3, 2010."

Those accounts were not ready in time for the McGrathNicol receiver's report.

SGL is an investment company in which Allan and Margaret Hubbard are significant shareholders.

It has investments and loans to various entities, but its major asset is full ownership of shares in Southbury Corporation (SCL), also in receivership.

SCL is also an investment company, and its primary asset is a 100% shareholding in South Canterbury Finance, also in receivership.

The McGrathNicol report said neither SGL nor SCL were operating entities or had employees.

When receivers were appointed, SGL owed $84.7 million to South Canterbury Finance and interest was accruing.

Financial information provided to the receivers by directors of SCL showed it had $263 million in assets, but the bulk of those were an $18 million advance to SGL and $245.5 million invested in South Canterbury Finance, both of which are in receivership.

As reported earlier this week, SCL has total liabilities of $104 million.


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