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A High Court judge last night rejected an investor group's attempt to delay a vote today on restructuring embattled finance company Hanover Group.
Barrister Paul Dale argued in the High Court in Auckland on behalf of plaintiff Ann Chambers Paris that investors need more time before voting.
The
pressure group Exposing Unacceptable Financial Activities (EUFA) was fronting the court action to the media and argued that the PricewaterhouseCoopers report on the restructuring proposal is not independent.
It sought to have the vote today on whether to endorse Hanover's restructuring proposal or put the group in receivership moved to February 16.
Ms Paris, who is from Masterton, has $100,000 invested in Hanover Finance secured debenture stock.
Hanover's trustees, Perpetual Trust and Guardian Trust, opposed the injunction application, heard by Justice Paul Heath who dismissed the application last night.
Hanover chief executive Peter Fredericson welcomed the decision.
"This has been an unwanted distraction, but at least the outcome is right for our investors," he said.
"They can now attend the meetings and exercise their right to vote in the same way as many others have already done through proxies."
Hanover hoped to announce the outcome of extraordinary resolutions this afternoon.
Hanover Finance is aiming to repay nearly 16,400 secured deposit investors their principal of more than $550 million within five years, under the debt restructure proposal.
At the end of June, $485m of those investments were deposited with Hanover Finance Ltd (HFL), while about $68m were with subsidiary United Finance Ltd (UFL).
In July, Hanover announced it was suspending acceptance of new investments and the repayment of existing deposits as it worked on the restructuring plan.
An independent appraisal of the restructure plan by PricewaterhouseCoopers warned that HFL investors may not achieve full repayment under the proposal. For UFL secured stockholders, there was a "reasonable prospect" they may achieve full principal repayment.
If the debt restructuring proposal was not approved, the only alternative was receivership, PWC said.
Shareholders Mark Hotchin and Eric Watson will inject up to $96 million of cash and property assets, provided investors back the proposal.
The vote comes after Mr Hotchin was reported to have held a lavish 50th birthday party in Fiji. He said in an interview with the Weekend Herald that he "gets it" that it was a very bad look.
The Commerce Commission is investigating whether Hanover had misled investors with its advertising.
- NZPA
Full details of the payback plan are available at:Hanover Finance