Published 22 September 2010
The Government has out 2 more Hubbard companies into statutory management – Hubbard Churcher Trust Management Ltd & Forresters Nominee Co Ltd, which hold assets connected with Hubbard Management Funds.
Commerce Minister Simon Power said yesterday the decision to put the companies into statutory management followed a recommendation by the Securities Commission, which made its recommendation after receiving a report from the statutory managers of Aorangi Securities Ltd.
The move is a result of ongoing investigations by statutory managers into Aorangi Securities & 7 charitable trusts, which were put into statutory management along with Mr & Mrs Hubbard on 20 June. 2 further trusts related to Aorangi Securities – Temple Bar Family Trust & Barns Charitable Trust – were put into statutory management on 13 September.
Hubbard Churcher Trust Management is owned & operated by the partners of HC Partners in Timaru, an accountancy firm formerly known as Hubbard Churcher. Hubbard Churcher Trust Management holds most of the investment assets of Hubbard Management Funds, which invests funds on behalf of 300 investors. It’s also a corporate trustee for some clients of HC Partners.
Forresters Nominee Co has Mr Hubbard as its sole current director & shareholder.
Mr Power said: "The Securities Commission recommended this action to preserve the interests of the beneficiaries of trusts administered by the companies, preserve the interests of investors in Hubbard Management Funds in the public interest, and allow the affairs of the companies to be dealt with in a more orderly or expeditious way.
"The Securities Commission was satisfied that those interests could not be adequately protected any other way.”
The same statutory managers appointed to Aorangi, the Hubbards & the 9 trusts have been appointed over the 2 new companies. They are Trevor Thornton, Richard Simpson & Graeme McGlinn (Grant Thornton Ltd).
Mr Hubbard’s best-known business, South Canterbury Finance Ltd, isn’t in statutory management but had receivers appointed to it on 31 August.
1 September 2010: Receivers enter South Canterbury Finance after it fails to secure backer
22 June 2010: S&P downgrades South Canterbury, Maier defends
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Attribution: Ministerial release, story written by Bob Dey for the Bob Dey Property Report.