2 August 2013
The fourteenth Statutory Managers’ Report states that more than 400 investors are set to receive a payment of $4.8 million on the 2nd of August as statutory managers of Aorangi Securities continue to make distributions from realised assets.
This further payment of 5 cents in the dollar brings the total distribution to Aorangi investors to $33.7 million, or 35 cents in the dollar as of 2 August 2013.
The statutory managers will continue to make prompt distributions as and when assets are realised and remain confident that as a result of the settlement most, if not all, of the Aorangi investors' capital will be returned over time.
The settlement agreement with Mrs Hubbard in May of the complex issues involving the introduced assets established a “working committee” of both parties to realise the remaining introduced assets. Many of the assets were co-owned by parties associated with Mr and Mrs Hubbard and there had been on-going negotiations about the sale of the Hubbard/Aorangi interest.
The working committee has been able to progress sales and recoveries. Since the settlement and as of 2 August 2013, $19 million has been distributed to investors. Some remaining loans will not be repaid in full, and the statutory managers are continuing legal proceedings and recovery administrations to realise some of the assets.
The statutory managers are aware investors would like to have an indication of the distributions to be made going forward. While there is an asset realisation plan in place, there are sometimes delays and therefore it’s too difficult to commit to specific dates and amounts.
The statutory managers remain committed to making distributions promptly after realisations are made and will continue to update investors as appropriate with the next report due in mid-February 2014 which will further detail the realisation of assets.
2 August 2013
The Fourteenth Statutory Managers’ Report advises that investors of the Hubbard Management Fund (HMF) have received a further payment of 5 cents in the dollar from the Capital Return Pool.
Combined with the first three Capital Return Pool payments, HMF investors have received a total of 45 cents in the dollar, or $9.6 million, of their entitlement. This is in addition to the interim distribution made to investors in February 2012.
This brings the total amount returned to investors, by way of interim distribution and the Capital Return Pool, to around $18.1 million.
The statutory managers aim to complete Capital Return Pool payments during the first half of 2014 subject to market constraints. Payments from the Surplus Assets Pool will not commence until all entitlements under the Capital Return Pool have been made.
Since the last report the statutory managers have completed the realisation of the more readily saleable assets and are now working on the private equity investments and less liquid assets.
Despite equity markets showing mixed performance over the first six months of the 2013 calendar year, the statutory managers remain committed to making payments to entitled investors promptly as and when assets are realised.
Since the last report all claims between Mrs Hubbard, the Hubbard family and the statutory managers have been resolved. This is positive for the investors as it allows the orderly realisation of assets to proceed without the distractions and impacts of possible litigation.
The next report is due in February 2014, covering the period to 31 December 2013.
A list of frequently asked questions are available. Click here to view. These questions will continue to be updated from time to time as new questions and information come to hand. It is recognised that not all investors will have computer access so copies of these questions will be available to be mailed to investors on request.
Copies of the Aorangi and HMF Statutory Managers' Reports were placed in the post 31 July 2013 for investors.
We will look to keep investors informed on a regular basis.
The Media are asked to contact Julian Light of Acumen Republic on +64 (0)4 494 5146 or firstname.lastname@example.org