Hanover saga 'just so unjust'

Lynne Mitchener and husband Bob. Photo / Chris Skelton

As Eric Watson was celebrating his 50th birthday with a million-dollar party, Lynne Mitchener was working out how to pay for her dad's funeral.

Her 83-year-old father spent his last two weeks pleading with Hanover Finance to pay $6000 he had saved for his funeral.

Hanover is co-owned by London-based Watson and business partner Mark Hotchin. News of Watson's lavish two-day birthday bash in Turkey shocked Mitchener.

"I wish he had celebrated at home and put the money he would have spent back into the company to pay back some of the older investors in Hanover who may not actually be around in five years time for the payout - like my dearly loved mum," said the Auckland woman.

"Perhaps Eric doesn't have a mum he cares about or else he would understand my distress about his disgustingly decadent birthday party."

Her mother, 83, is also angry at Watson's insensitivity. The mother and daughter were upset to read in last week's Herald on Sunday of Watson's party.

Many of his 300 guests stayed in Istanbul's lush Four Seasons, which costs up to $42,000 for one night in the Atik Pasha suite.

The $6000 Mitcheners invested in Hanover Finance in October 2004 was, for him, a lot of money. He reinvested for 24 months in 2006.

When he was diagnosed with cancer in 2007 he asked whether the company would pay him out early.

Hanover Finance first agreed, said Mitchener, but then declined when the company collapsed last July - owing about 17,000 investors more than $527m.

In the weeks leading up to his death on January 31, Mitchener's father wrote pleading letters to Hanover explaining he was at death's door.

"It [$6000] doesn't sound a lot but it's really all he had," Mitchener said.

The fiercely independent man was devastated when he learned the money would be gradually repaid over five years and he would leave his wife with nothing.

"My mum and dad have worked extremely hard all their lives and all they have to show for it is a humble two-bedroom house, which mum now lives in, and a 1986 car."

Mitchener's mother has received one payout of $120 - 2 per cent of the money she is owed. She will have to wait five years for the rest. Mitchener doesn't think her mum will ever see it.

"It's just so unjust."