A Wairarapa investor remains unbowed after leading and losing a legal battle over the restructuring of failed finance company Hanover Group.
"I do think it was worth it," Greytown resident Ann Paris said of her unsuccessful court action to delay yesterday morning's vote on whether to put Hanover in receivership or
back the group's controversial rescue plan.
Investors voted overwhelmingly in favour of the rescue plan, the day after the High Court in Auckland rejected Ms Paris' appeal to move the decision to February 16 and give investors more time to review their options.
Despite having no regrets over the battle, she said both the court ruling and yesterday's vote was a "foregone conclusion".
"It wasn't a surprise. My main concern was that it all went through so fast," Ms Paris, who has $100,000 invested in Hanover Finance secured debenture stock, said.
She was also concerned investors had fallen prey to a "really good marketing exercise".
"It seemed investors had only been told Hanover's side and not the receiver's. It's just unfortunate. Some bad things have been happening lately. I've been just one person to have a go."
Although the court ruling was "too little, too late", she was content in the knowledge that Hanover and other finance companies would now be watched more closely than in the past.
"They're going to have to watch their P's and Q's."
Ms Paris' campaign for the delay was backed by the pressure group Exposing Unacceptable Financial Activities, which argued that the PricewaterhouseCoopers report on the restructuring proposal is not independent.
Hanover's trustees, Perpetual Trust and Guardian Trust, opposed the injunction application, heard by Justice Paul Heath who dismissed the application.
Hanover chief executive Peter Fredericson welcomed the decision and said the court action had been an "unwanted distraction".
Now that it has its investors' approval, Hanover will press ahead with its debt restructure proposal, which aims to repay nearly 16,400 secured deposit investors their principal of more than $550 million within five years.
Shareholders Mark Hotchin and Eric Watson will inject up to $96 million of cash and property assets. 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. The Commerce Commission is investigating whether Hanover had misled investors with its advertising.
A Wairarapa investor remains unbowed after leading and losing a legal battle over the restructuring of failed finance company Hanover Group.
"I do think it was worth it," Greytown resident Ann Paris said of her unsuccessful court action to delay yesterday morning's vote on whether to put Hanover in receivership or
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