tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 14th, 6:08PM

Investments

rss
Latest Headlines

Hanover calls in lawyers on Allied

Hanover Finance has called in the lawyers to pursue Allied Farmers over allegedly attempting to "evade various contractual obligations to Hanover."

Friday, November 26th 2010, 3:07PM

Hanover has also disclosed it is now assisting the authorities looking into the finance company's failure.

Hanover convinced its investors to swap their debenture stock for shares in Allied.

It accused Allied of "raising loan transactions with outside parties" and is "pursuing legal action against Allied and its subsidiaries to enforce their defaults."

Independent director David Henry, the only other director along with Mark Hotchin, said Hanover is cooperating with "various regulatory authorities and their information requests."

Last week, the Securities Commission said it will decide on whether to prosecute Hanover's directors by Christmas following a major investigation into the firm and its affiliates, United Finance and Hanover Capital.

Allied managing director Rob Alloway took a swipe at Hotchin and his business partner Eric Watson after HSBC called a $19 million loan on Matarangi Beach Estates, saying former Hanover and Strategic Finance chief executive Kerry Finnigan offered to buy the assets at the loan value.

The property vehicle, which was pumped into the Hanover books by Watson and Hotchin in a bid to shore up its equity, was sent to the receiver last week.

In July, Allied accused Hanover of breaching the terms of their debt-for-equity swap, and refused to pay the last $5 million or any future obligations relating to the deal.

« Fifth Hubbard report releasedEquitable euthanised »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
Rabobank 5.25  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com