Hubbard’s letter in the post - maybe

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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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