About 400 investors in Allan Hubbard's failed Aorangi Securities are to receive more than 99c in the dollar - totalling about $101 million - following four years of statutory management of the private investment company.
While the late Mr Hubbard's failed South Canterbury Finance was bailed out by a Crown guarantee of funds amounting to $1.75 billion, Aorangi Securities and Hubbard Management Funds were not covered.
The recovery on behalf of investors had hinged on a High Court claim by Mr Hubbard's widow Jean over about $60 million of assets but, crucially for investors, an agreement was reached and the assets came under the control of the statutory managers, Grant Thornton.
Grant Thornton announced yesterday all available assets had been realised and the statutory management concluded, investors having recovered 99.037c in the dollar.
During the past four years, Grant Thornton had sold more than 30 assets, including farms and commercial property across the South Island, worth an estimated $420 million, to recover Aorangi's share of those investments.
''Our approach through the Statutory Management was to return funds to investors as quickly as possible, without undertaking asset fire sales,'' Grant Thornton said.
Aside from having recovered $24.3 million of loan repayments, the managers undertook operational reviews and established processes for ongoing governance and management of more 50 entities, to ensure Aorangi's return would be maximised, Grant Thornton said.
There were also loan repayments and settlements of more than $17 million from the Te Tua Charitable Trust, also in administration, which had provided interest-free loans to a range of business people, funded by Aorangi Securities.
In their 16th report, in July, on the separate Hubbard Management Fund, Grant Thornton said investors had received 50c in the dollar, and there was still almost $17 million of assets to be sold. The next report on Hubbard Management is due in February.
