As well as HMF dispute, widow and family trying to get $60 million from Aorangi

Jean Hubbard and her family interests have indicated they will try to obtain $4.3 million of assets from one of her late husband's investment vehicles, its statutory manager says.

This claim is on top of the $60 million she is seeking from a separate fund caught up in the collapse.

Statutory manager Grant Thornton released reports yesterday on two Hubbard entities under its control, Aorangi Securities and Hubbard Management Funds (HMF).

Aorangi was placed into statutory management by the Government in June 2010 after an investor complained to the Securities Commission that they did not receive an investment statement or a prospectus before depositing funds.


Grant Thornton began examining HMF soon after and it was also placed under statutory management.

When releasing its update on HMF yesterday, Grant Thornton said that more claims against the fund's assets had "come to light".

"There are now claims of about $7 million against the [HMF's] portfolio value of around $47 million," the statutory managers said.

Jean Hubbard - the widow of Timaru businessman Allan Hubbard - or her family interests are claiming $4.3 million worth of assets while ASB Bank is attempting to get $2.1 million from HMF.

The Hubbard claim, which Grant Thornton said was pending, relates to Mercer Group shares and South American Ferro Metals shares that form part of HMF's portfolio.

"The initial claim appears to be that Mr [Allan] Hubbard inappropriately introduced the Mercer Group shares to HMF from a number of parties including Mr and Mrs Hubbard, and a number of Hubbard family trusts and companies," Grant Thornton said.

In regard to the Ferro Metals shares "Mrs Hubbard is asserting she did not consent to the transfer of her portion of the shareholding to HMF", Grant Thornton said.

The court wrangle over Aorangi's assets - due to be heard this month - will "consider Mrs Hubbard's claim that $60 million of the $96 million of Aorangi assets were never transferred to Aorangi's ownership and are therefore hers personally and for her late husband's estate," Grant Thornton said yesterday. The statutory manager said the claim could have a "severe impact on returns to [Aorangi] investors", who to date have got back $14.5 million, or 15c in the dollar.