Hanover deadline looming

About 600 investors who are eligible for a payout from collapsed finance company Hanover have not completed the necessary paperwork. The company collapsed in

2008 owing $554 million to 16,500 investors.

In 2015, the Financial Markets Authority (FMA) negotiated a

$18m settlement with the former directors of Hanover Finance, Hanover Capital and United Finance, relating to statements made in their 2007 prospectuses, advertising and the March 2008 prospectus extension certificate.

Deloitte is managing the distribution of investors’ funds. To date,

85 per cent of eligible investors have responded to correspondence and received their money.

But there are still about 600 who have either returned incomplete information or are yet to make a claim.

In total, 4481 investors are eligible for compensation, and 3799 investors have already been paid out. The investors have received a total of $15.5m.

There are 582 eligible investors who have been contacted by Deloitte, but have not yet made a claim. They are eligible for a total of $1.31m.

There are a further 100 investors whose claims, worth

$258,000, are being progressed. An FMA spokesman said Deloitte had been able to contact all but 72 eligible investors eligible for a total of $242,616.

Money not claimed by February

16 will be sent to the Inland Revenue Department.

As part of the settlement, the four Hanover directors – Bruce Gordon, Mark Hotchin, Gregory Muir and Tipene O’Regan – agreed not to act as directors of a bank or non-bank deposit-taker for three years. That term expires next year.