Further $4.8 million payout to Aorangi investors

2 August 2013

Further $4.8 million payout to Aorangi investors

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 today,” said the statutory managers.

“We’ll continue to make prompt distributions as and when assets are realised. We remain confident that as a result of the settlement we will be able to return most, if not all, of the Aorangi investors' capital 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 today $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.”

“We are aware investors would like to have an indication of the distributions to be made going forward. While we have an asset realisation plan in place, there are sometimes delays and therefore it’s too difficult to commit to specific dates and amounts.

“We remain committed to making distributions promptly after realisations are made and will continue to update investors as appropriate,” said the statutory managers.

Statutory managers expect to provide investors with the next report in mid-February 2014 which will further detail the realisation of assets.

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