Former South Canterbury Finance chairman Allan Hubbard.
Former South Canterbury Finance chairman Allan Hubbard.
Investors in one wing of Allan Hubbard's crumbled financial empire have got more than 99 per cent of their funds back.
The statutory managers of Aorangi Securities - one of the late Timaru financier's firms - today said that investors had received 99.037 cents in the dollar back and theiradministration of the entity was now at an end. The total payout to investors was around $101 million.
"While we have signalled for some time that investors in Aorangi were likely to receive most, if not all, of their capital back it is never-the-less pleasing to have reached this conclusion," the managers said.
"Our approach through the Statutory Management was to return funds to investors as quickly as possible without undertaking asset fire sales."
Aorangi Securities was placed in statutory management in 2010 after an investor complained to the Securities Commission that they had not received a prospectus or investment statement. The commission believed Aorangi, which was originally a contributory mortgage company, had been operating as a finance company.
Many loans were inadequately documented and some appeared to have been made contrary to investors' instructions.
Further payouts to investors, some of whom are elderly or in financial hardship, hinged on a High Court dispute between the statutory managers and Jean Hubbard (Allan Hubbard's widow) over $60 million of assets.
But the parties reached an 11th hour settlement last year and the hearing never went ahead.
