Hubbard’s letter in the post - maybe

Investors expecting to receive a letter from Allan Hubbard as part of plans to regain control of his investment companies may be disappointed.

Friday, January 14th 2011, 5:00AM 7 Comments

by Benn Bathgate

Reports said the Timaru businessman planned to write to investors directly to "show them a totally different picture" of the state of his investment companies.

However, Hubbard told Good Returns the idea "was only a suggestion, and has got to be approved by the statutory manager."

Hubbard told the Timaru Herald his lawyers were working to get him back in control of investment companies Aorangi Securities, Hubbard Management Funds, South Canterbury Finance and seven charitable trusts.

Hubbard said Aorangi still contained "good assets" and that it had only been placed into statutory management after an "anonymous and malicious complaint" regarding the lack of a disclosure statement - which Hubbard said was not required as Aorangi did not take money from the public - only high-net worth individuals.

He said that once Aorangi was placed into statutory management - incorrectly in his view - a ‘domino effect' began which saw investments into South Canterbury Finance fall off from $200 million to just $200,000.

He said he was in the process of putting together an investment prospectus for Aorangi and that the statutory managers "haven't really achieved anything."

He also claimed a New York-based investment fund had offered to acquire South Canterbury Finance but that the "Government chose not to accept that offer."

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

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Comments from our readers

On 14 January 2011 at 4:27 pm John said:

Anybody who has read Bernard Hickey's wonderful piece on why South Canterbury Finance really collapsed would never in a million years agree to let Allan Hubbard regain control of his investment companies. End of story!

On 14 January 2011 at 11:33 pm smes said:

and you John whoever have not done your research. If you believe Bernard Hickey - truly may God help you!

On 15 January 2011 at 7:44 pm billy the broker said:

Another deluded person smes!!
Wait till you have money taken from you.
You will sing another tune.
When he goes to prison will you see him and preach the bible?? This whole fiasco is a joke and the people who support him are a bigger joke. And I live in this area. How deluded, how deluded. We have a mechanic in this area who has a website in favour of Hubbard, just sums it up. Good luck to the lemmings.

On 17 January 2011 at 8:47 pm John said:

Well said billy the broker. Some of these Hubbard supporters really do seem to be living on a different planet to the rest of us. Lemmings is a good description indeed!

On 17 January 2011 at 11:24 pm Kereama Williams said:

It is the Statutory managers who have lost Aorangi Investors out of pocket. Not Allan Hubbard. Not one cent was lost by any investor. Until Statutory rape of Aorangi investments took place. With John Key blessing

On 18 January 2011 at 9:17 am John said:

Kereama Williams, you and all the other Hubbard supporters on here need a reality check. If it wasn't for the Government (or should I say the New Zealand taxpayer) investors would be out of pocket! I don't think the average person on the street (if they had been given a choice) would ever have agreed to the bail out in the first place. Some things are just too big to be allowed to fall over though and this unfortunately was one of them. Without stereotyping the bulk of Hubbard's investors/supporters seem to be of the older generation who should know better when it comes to selecting a safe place to put their life savings. Proof that age does not always equate to intelligence!

On 18 January 2011 at 10:45 am Johnny Adviser said:

Hubbard isn't corrupt or fraudulent in my view, simply doddery and past it. More clutz than criminal I suppose you could say.