If this estimate is correct, Hubbard, who is expected to sign over between $50 million and $60 million of assets already included in the Aorangi portfolio, will receive nothing.

The other investors won't receive interest and may also suffer a capital loss.

The managers are expecting to distribute 10 cents in the dollar to investors by the end of June, depending on expected transactions occurring. Three cents in the dollar was repaid last year.

Hubbard has pledged about $24 million of assets held by Te Tua Charitable Trust to Aorangi. However, the statutory managers estimate Te Tua's net assets were worth $10.9 million at January 31compared with their $27.8 million book value.

Only one-third, or $456,420, of the total $1.3 million in interest due on Aorangi's loans in the December quarter had been received by mid-February and total interest arrears are now $3.9 million.

Nearly half the interest due was from parties related to Hubbard and only a third of this has been paid.

"The loan book comprises a wide variety of assets including farms, commercial property, forestry, infrastructure, personal and business loans," the managers say.

"Most of the loans are non-performing and, in many cases, interest has never been paid."

One loan to a farming company accounting for 42% by value of non-Hubbard related loans had previously been secured by a first mortgage but, before the receivers were appointed, Hubbard agreed to change that to a second mortgage.

The managers are trying to negotiate a debt-for-equity swap which would give Aorangi a half share in the farm but negotiations "are being delayed and potentially undermined by a family dispute."

Read the Aorangi report;

http://www.grantthornton.co.nz/Sixth-Statutory-Managers-Aorangi-Report-March.pdf

And this is yesterday's Hubbard Management Funds report:

http://www.grantthornton.co.nz/Sixth-HMF-Statutory-Mangers-Report-03-March.pdf