Aorangi $60m assets dispute adjourned

Allan Hubbard's South Canterbury Finance collapsed in August 2010. Photo / Sarah Ivey

A court wrangle involving $60 million of assets and one of the funds caught up in the Hubbard financial collapse has been adjourned until May next year.

A case in the Timaru High Court to determine a claim from Jean Hubbard - the widow of businessman Allan Hubbard - over $60 million of assets from Aorangi Securities was originally due to begin on October 29.

According to Aorangi Securities' statutory manager the court fixture will "consider Mrs Hubbard's claim that $60m of the $96m of Aorangi assets were never transferred to Aorangi's ownership and are therefore hers personally and for her late husband's estate".

The statutory manager said earlier this month the claim could have a "severe impact on returns to [Aorangi] investors", who to date have got back $14.5m, or 15c in the dollar.

The managers said in June that if the $60m of assets were available to Aorangi investors then returns would be close to 100c in the dollar.

Justice Lester Chisholm today adjourned the fixture until 20 May next year after the statutory manager argued it needed more time to assess a mountain of documents.

The judge said he had "reluctantly decided to adjourn the fixture" noting that other parties including Jean Hubbard were "extremely unhappy" at the request.

According to a minute from Justice Chisholm, Jean Hubbard's lawyer raised concerns about her health noting "she was not a young person" and possibly wouldn't be fit for cross-examination next May.

Butler also raised the issue of whether Hubbard could bear the costs of the adjournment and substantive hearing.

- additional reporting: BusinessDesk