Opinion
One cheer, then, for Mark Hotchin. He did not have to front at a series of meetings around the country and be flayed by those who lost money through his business venture, Hanover Finance.
But he did, and he seemed well prepared in the art of accepting just enough blame,
deflecting just enough heat and displaying some, but never quite enough, empathy with investors.
Mr Hotchin was on a hiding to nothing. Or was he? There must have been some reason, other than offering himself for abuse, that the Hanover director toured the country. The answer is he believes it is in everyone's interest that investors back a deal to swap their debentures in Hanover, which is struggling to pay them back, for shares in a smaller company, Allied Finance.
They then take their chances with the sharemarket, effectively putting a value on what, for some, will be their life savings. It is an opportunity to move from the devil they know to a devil they cannot predict.
An alternative is that Hanover lands in receivership and investors and the company are at the mercy of bankers. Directors of the company might, too, be subjected to ongoing disputes with receivers or investor groups trawling the debris.
Or investors could reject the Allied Finance deal, take the risk of Hanover falling into receivership and meanwhile depend on Mark Hotchin, Eric Watson and others delivering returns as promised when the company negotiated a moratorium on its debts.
Mr Hotchin favours the first option. He must hope that once emotion has been aired, investors will rationally assess a deal which would bring the Hanover saga to a close, giving Allied a chance to put things right.
The public Mark Hotchin could retreat from view, his $30 million Paritai Dr mansion no longer an emblem for investor disgust.
