Investment arrears and shortfalls of more than $20 million in companies associated with South Canterbury Finance founder Allan Hubbard have been highlighted by the Government-appointed statutory managers.
No payout will be made to investors from Hubbard Management Funds until statutory managers Grant Thornton receive court direction or find a viable alternative.
The complex web of loans and investments associated with South Canterbury businessman Allan Hubbard took a new turn yesterday with the statutory managers revealing a private investigator may be used to track down some borrowers.
South Canterbury Finance driving force Allan Hubbard has seldom given interviews about his life, but during a private encounter one evening two years ago, after meeting Prime Minister John Key at his Timaru offices, he opened up about his early years.
Never mind the cow cockies - South Canterbury Finance (SCF) and Allan Hubbard's woes were aggravated by glitzy property investments, including a number in upmarket Auckland bars and nightclubs.
Two more entities established by Allan Hubbard are likely to be put into statutory management, Prime Minister John Key says.
People attending a public meeting at the weekend vowed to keep fighting to clear the name of South Canterbury Finance founder Allan Hubbard, as receivers reveal they have had 150 inquiries in less than three weeks from potential purchasers of group assets.
The sale of South Canterbury Finance has started with receivers calling for expressions of interest for the purchase of its assets.
Treasury is confident there were no grounds to remove South Canterbury Finance from the retail deposit guarantee scheme.
The focus turned today to who will buy the assets of South Canterbury Finance and the unintended consequences of the Retail Deposit Guarantee Scheme.
South Canterbury Finance's majority shareholder and founder Allan Hubbard says he could have saved the business, put into receivership today, if he had not been removed from the board.
Treasury has already paid the South Canterbury Finance trustees $1.6 billion in a taxpayer bail-out of the beleaguered company, which has gone into receivership.
The company Allan Hubbard founded is in receivership, he remains in statutory management and another of his companies is being investigated by the Serious Fraud Office (SFO) but support for the Timaru businessman remains strong.
A stinging report by the statutory manager of Allan Hubbard's companies has identified high levels of lending to the volatile dairy sector as posing significant risk to the return of $96 million of investors' capital.
The statutory manager of Aorangi Securities appears to have bowed to public pressure and appointed an independent administrator to assess hardship cases for those who have had funds frozen.
Nearly $40,000 had been raised from the public to help Aorangi investors most in need, a spokesman for the Hubbard Support Fund Trust, John Funnell, said yesterday.
Aorangi investors who have their investments with the Allan Hubbard-linked company are unlikely to receive any government compensation for lost income or hardship, Dunedin lawyer Sally Peart says.
A meeting yesterday of about 250 investors and supporters of Allan Hubbard demanded the Government immediately produce evidence of fraud or halt action against the Timaru businessman.
The Serious Fraud Office says it has visited the offices of southern millionaire Allan Hubbard's Aorangi Securities in Timaru in response to concerns raised by the Registrar of Companies.
South Canterbury Finance is expecting "collateral damage" as a result of the announcement the Serious Fraud Office is investigating southern millionaire Allan Hubbard's business interests.
