Hanover owners pledge extra money for investors

Hanover Finance owners Eric Watson and Mark Hotchin will put more of their own money into the distressed finance company to ensure retail debenture holders get their money back, Mr Hotchin said yesterday.

The two men are working on a restructuring proposal for their company after this week freezing repayments to 16,500 investors owed $554 million.

Mr Hotchin yesterday told the Weekend Herald: "There will be additional money put in to ensure the investors get their money."

The string of finance company collapses hasn't deterred others from continuing to offer high returns, but investors are being warned to steer clear.

Industry observers are alarmed that some companies are still offering returns of 10 to 13 per cent.