More to come - Most Hubbard Management Fund (HMF) investors received their first interim pay-out from the statutory managers, Grant Thornton New Zealand, last Friday.
“We are keenly aware that many investors needed their funds as soon as possible. We have worked with the High Court to ensure that the full hearing will be able to take place in May this year.” As part of this process, the Court has agreed for us to make an interim distribution of up to $12 million, of which $9 million has been paid out last week,” said Graeme McGlinn, one of the three statutory managers.
“We have carefully selected and sold shares held by HMF to provide the cash for this first pay-out. No shares have been sold at less than the current market price, and we have timed the sales so as not to depress those prices.
“We have previously advised that we asked the Court to decide on the fairest way of calculating what each investor in HMF should receive. The Court hearing is scheduled for 21 and 22 May 2012.
“In the meantime, the Court has allowed us to make an interim payment to investors based on the amount of allocated share investments specified in the HMF investor statements. We have not included payments for the cash component of investor statements or made payments to those investors with no shares allocated to them on their statements.”
“We expect to distribute at least an additional $3 million dollars as a further interim payment shortly after the Court gives its decision.”
“Immediately before the distribution, HMF had a portfolio value worth about $43 million, which is less than half the $89 million that had been recorded on investor statements at 31 March 2010. This is due to fund discrepancies and a general decline in the share markets over the last two years.
Once the Court decision is known, the statutory managers can sell down the balance of the portfolio in an orderly way for investors and distribute it in accordance with the Court‘s guidance. This will happen over several years as many of the investments are long term,” concluded Graeme McGlinn, statutory manager.
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