Aorangi Statutory Management concluded

Aorangi Statutory Management concluded

22 September 2014

Aorangi Statutory Management concluded – investors to receive 99 cents in the dollar back

Investors of Aorangi Securities Ltd (“Aorangi”) have now received 99.037 cents in the dollar, amounting to a total payment of around $101 million, the Grant Thornton Statutory Managers announced today.

The Statutory Management of Aorangi has now concluded.

“While we have signalled for some time that investors in Aorangi were likely to receive most, if not all, of their capital back it is never-the-less pleasing to have reached this conclusion,” the Statutory Managers said.

“Our approach through the Statutory Management was to return funds to investors as quickly as possible without undertaking asset fire sales.”

In their final report to investors, they noted that over the last four years the Statutory Management of Aorangi had:

· Realised over 30 assets which involved farms and commercial property worth an estimated $420 million in order to recover Aorangi’s share of these investments

· Undertaken operational reviews and established processes for ongoing governance and management of over 50 entities to ensure that Aorangi’s return would be maximised

· Recovered $24.3 million of loan repayments

· Realised over $17 million of Te Tua Charitable Trust loans and investments for the benefit of the Aorangi investors

· Entered into an amicable agreement over the introduced assets with Mrs Hubbard that enabled the orderly sale of the assets

· Conducted and executed realisation strategies including sale of underlying farm assets, appointment of agents, introduction of buyers and all process steps to achieve completion of sale of assets.

“Now that the statutory management has concluded and all available assets have been realised Aorangi has been returned to the directors and shareholders,” the Statutory Managers said.

– ends –

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