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12 December 2017

Hanover Finance, Hanover Capital & United Finance

Background

Hanover Finance was a New Zealand non-bank finance company that focused on lending for high-risk property development that failed in 2010(with due repayments of NZ$554 million owed to 36,500 investors) under the leadership of Mark Hotchin.

FMA alleges that the directors and promoters made untrue statements in the registered prospectuses and investment statements of Hanover Finance, Hanover Capital and United Finance dated 7 December 2007.

FMA also alleges that the directors made further untrue statements in certain advertisements and when they signed prospectus extension certificates on 31 March 2008.

Proceedings were issued under sections 55B, 55C, 55G and related sections of the Securities Act 1978. FMA applied for compensation, declarations of civil liability, civil pecuniary penalties against each of the five directors and promoters - Mark Hotchin, Gregory Muir, Sir Tipene O'Regan, Bruce Gordon, Eric Watson and Dennis Broit.

12 December 2017

FMA calls for eligible investors in the Hanover settlement to make a claim before 16 February 2018.

18 December 2015

Deloitte distributed the second round of proceeds from the FMA’s settlement with the directors of Hanover to eligible investors.

23 November 2015

Deloitte distributed the first proceeds from the FMA’s settlement with the former Hanover directors to eligible investors who have provided complete information.

28 August 2015

Deloitte sent a letter to every investor who had an outstanding investment in the Hanover Finance Companies as of 23 July 2008 advising them whether or not they are eligible for a share in the settlement sum or whether Deloitte requires additional information to determine eligibility.

6 July 2015

FMA has reached a settlement of its civil proceedings against the former directors of Hanover finance companies, and the former directors of a parent firm, Hanover Group Ltd. As part of the settlement, $18 million will be distributed to eligible investors who invested in the Hanover finance companies in the period from 7 December 2007 to 23 July 2008.

17 August 2012

The Court of Appeal has dismissed an appeal by the trustees of the KA3 and KA4 trusts on interim asset preservation orders obtained by FMA.

The trustees were appealing the High Court's earlier decision to uphold interim asset preservation orders in respect of assets of the trusts of former Hanover director Mark Hotchin. FMA was opposing the appeal.

20 April 2012

The Court of Appeal has dismissed an appeal by former Hanover director Mark Hotchin on asset preservation orders obtained by the FMA.

30 March 2012

FMA filed civil proceedings against directors and promoters of Hanover Finance Ltd, Hanover Capital Ltd and United Finance Ltd

15 December 2011

The FMA announced that it proposes to file civil proceedings against directors and promoters of Hanover Finance Ltd, Hanover Capital Ltd, and United Finance Ltd. The proceedings will relate to statements made in the December 2007 prospectuses and subsequent advertisements.

December 2011

Mr Hotchin appealed the upholding of the interim asset preservation orders by the High Court.

15 December 2010

The High Court, on application from the Securities Commission, has granted a freezing order with respect to New Zealand assets believed to be associated with former Hanover director Mark Hotchin.

The application was granted without notice to Mr Hotchin on Friday 10 December 2010. Mr Hotchin intends to apply to revoke these orders. A hearing in that respect is expected in February 2011.

The action was taken under sections 60G and 60H of the Securities Act with a view to ultimately freezing sufficient property and assets of Mark Hotchin to meet any civil claims that may be brought by investors. Any such claims would relate to those who invested in Hanover Finance, Hanover Capital and United Finance on the basis of any disclosure documents that are proved to have included untrue statements.