Hotchin hearing held in closed court

File photo

A hearing on whether former Hanover director Mark Hotchin will have a ruling that froze his assets revoked was held in closed court at the High Court at Auckland today.

Hotchin had his New Zealand-based assets frozen by the Securities Commission in December.

It was the first time the commission had used such force since the Securities Act was reformed.

The details of the hearing, that is expected to continue tomorrow, cannot be reported but the judgment on whether the orders will be revoked against Hotchin and related trusts will be made publicly available.

Justice Helen Winkelmann allowed media to stay in court during the proceedings today.

Hotchin, who is living in Australia, was not in court today.

In November, before his assets were frozen, the Serious Fraud Office announced it was investigating Hanover Finance - of which Hotchin was a former director.

The SFO has not laid any charges against Hanover Finance or Hotchin.

Last week, Hanover Finance claimed that Allied Farmers, which took on much of its business when it collapsed, had lost shareholders' money due to alleged mismanagement.

In a letter sent to Hanover Finance investors Hotchin and chairman David Henry said they were "alarmed at the continuing erosion in the value of assets" that were transferred to Allied Farmers under a debt for equity swap.