They acquired South Canterbury Finance (SCF) by 1963 from a group of businessmen including a member of the Todd family.
The "originally modest" company began to achieve "real size" after buying Canterbury Finance from Humphrey Rolleston in 1986, in return for a 23% holding in Southbury Group, the owner of SCF and Hubbard’s other assets.
[4] Hubbard was considered the driving force behind the company's growth as it ultimately became the largest financial institution in the South Island.
[8] In June 2010, Allan Hubbard stood down as Chairman of South Canterbury Finance and was replaced by Bill Baylis.
[12] In August 2009, South Canterbury Finance announced a net loss after tax of NZ$67.8 million for the year ended June 30, 2009 and reported that it had been in breach of lending covenants.
[13] By May 2010, perpetual preference shares in SCF with a face value of $1, which were not covered by the government retail deposits guarantee scheme, were trading at 30 cents, reflecting a high perceived risk of default.
[14] On 31 August 2010, South Canterbury Finance asked its trustee to place it in receivership after negotiations over a recapitalisation deal failed.
Maier said the global financial crisis accentuated some of these problems, but had not caused South Canterbury Finance’s collapse.
[19] The charges include entering the Crown Guarantee Scheme by deception, omitting to disclose a related party loan of $64.185m from SCF to Southbury Group and Woolpak Holdings, failing to disclose related party loans of $19.1m from SCF to Shark Wholesalers, and breaching the crown guarantee scheme by lending $39m to Quadrant Holding Limited.
The review of the Securities Commission concluded that many of the loans were inadequately documented, appeared to be unsecured and contrary to instructions from investors.
[28] In July 2010, Grant Thornton reported that Allan Hubbard also controlled an additional business entity that they had not been aware of when appointed.
[30] In April 2012, Grant Thornton paid out an interim distribution of $9 million (or 13.4c in the dollar) to investors in Hubbard Management Funds.
Grant Thornton asked the High Court to decide how to distribute the fund given the lack of a prospectus and given that the 'largely fictional' investor statements had not been reconciled to investment assets for three years.