Investors in two separate private funds of the late financier Allan Hubbard have this week been sent further repayments, which now total almost $52 million since the companies were placed in statutory management about three years ago.
Unlike the Government's $1.75 billion guaranteed bail-out of Mr Hubbard's failed South Canterbury Finance in August 2010, investors in the private Hubbard Management Funds (HMF) and Aorangi Securities Ltd have had to wait for statutory managers Grant Thornton to work through multiple legal issues over asset ownership, then sell the funds' respective assets.
At stake was about $40 million in HMF, which the managers have said earlier that Mr Hubbard had overstated to the tune of $83 million, and $96 million in Aorangi.
Reports released this week by Grant Thornton said Aorangi's more than 400 investors were about to receive a further $4.8 million, or 5c in the dollar, bringing total payments to date to $33.7 million.
''We remain confident that as a result of the settlement we will be able to return most, if not all, of the Aorangi investors' capital over time,'' the managers said in their 14th report.
In May, expensive litigation over the assets of Aorangi was avoided with an out-of-court settlement with Mr Hubbard's widow Jean, who had laid claim to about $60 million of the $96 million in the fund.
Grant Thornton said after the settlement agreement with Mrs Hubbard of the complex issues involving the introduced assets in Aorangi, a committee of both parties was established to realise the remaining introduced assets.
''Many of the assets were co-owned by parties associated with Mr and Mrs Hubbard and there had been ongoing negotiations about the sale of the Hubbard/Aorangi interest,'' Grant Thornton said. Since the settlement and $19 million had been distributed to investors.
Investors in HMF had just received a further 5c in the dollar, bringing the total returned to investors, through interim distribution and the capital return pool, to about $18.1 million.
''We're now working on the private equity investments and less liquid assets,'' Grant Thornton said.
Since their last report, Grant Thornton said it had ''resolved all claims'' between themselves, Mrs Hubbard and the Hubbard family, which would allow ''the orderly realisation of assets'' to proceed without the threat of potential litigation.
The next reports on Aorangi and HMF are due in mid-February 2014.
Payouts to date
Hubbard Management Funds: Placed under statutory management September 2010. Most of 262 investors have received repayments of 45c in the dollar to date, totalling about $18.1 million.
Aorangi Securities Ltd: Placed under statutory management June 2010. Most of the more than 400 investors have received repayments of 35c in the dollar, to date totalling about $33.7 million.
