KIWI FINANCE COMPANY HANOVER

COLLAPSE 2010

KIWI FINANCE COMPANY HANOVER

But whats the future look like for those already heavily committed & finance companies ability to invest successfully collapsed

HANOVER: a Finance company paid themselves a remuneration & how they can get away with investor funds

However the government needs to put the breaks on where these finance companies invest in to safeguard Kiwisavers? but even as these companies report on their financial situation some will be dishonest and kiwisavers wil suffer as they can pay themselves what they want at investors expense like Hanover the 2 directors paid themselves a nice pay packet of $91m and noone can stop that? Allied Finance came along & decided to buy into Hanover on another dumb move just to add to the turmoil.

HANOVER FUNDS FROZEN:

December 2010: Former Hanover Finance boss Mark Hotchin says he can't live on $1000 a week the amount the Securities Commission will allow him, after a High Court order freezing all his New Zealand assets. The order included his bank accounts and $13.5 million property at Boatshed Bay on Waiheke Island in Auckland's Hauraki Gulf and a $30m not-completed luxury home on Orakei's Paritai Drive. Hanover Finance had 13,000 investors with $465 million worth of debentures & United Finance - another company in the Hanover Group - had 2400 investors with $65 million in debentures. Combined total was more than $500 million.Eric Watson and Mark Hotchin fleeced it. The court froze the assets of Mr Hotchin & 2 trusts on application of the Securities Commission, without notice. However he did front up on Closeup on 17th Feb 2011 and he had the guts to say what happened with Hanover. No sign of watson though as he is in the Uk but again it was the shareholders who voted for Allied and now Allied is blaming Hanover so who is right and why is Allied passing the buck & Hotchin passing his buck. Well better to blame someone else.

Hotchin & Eric Watson sold their troubled business of finance assets & properties to Allied Farmers Ltd in December 2009 when Allied Farmers Ltd shareholders voted to approve the purchase by Allied Farmers Investments Ltd of the finance assets of Hanover Finance & United Finance Ltd being an exchange agreement, and to issue new Allied Farmers shares as consideration for the acquisition. The problem to day is noone is going to purchase these properties at the price he wants and being so greedy he put all his eggs in one basket instead of being simple---- a greedy so in so will now have to suffer or lets hope this is the case. Surely some of that money caould go back to investors in a good will gesture?? & perhaps nothing like this would have happened but he and his wife Amanda decided to go all out on the luxury spending spree. But like many when the Feds close in name changes to properties etc occur as they scurry to readjust their fortunes in everyone elses names to avoid confiscation or indeed more losses.

People need to wake up if they wish to invest in companies for a faster buck on spec. Its not worth it and this is indeed a wakeup call. These guys can take what they like and pay themselves dividends to themselves. When they crash they keep and just like Bryers in Blue Chips can still conduct business in Australia even though they are bad guys

FROZEN PROPERTIES OF HOTCHIN:

Marina at Gulf Harbour, Whangaparaoa Development land

Paritai Dr home $30 million Auckland

69ha Coromandel farm

Jack's Point Sections near Queenstown

51ha farm Karaka, south of Auckland

Office buildings Queen St, Auckland

Office building Fanshawe St, Auckland

Two retail units Tamariki Ave, Orewa

4.5ha waterfront land holiday home on Waiheke Island

Hotchin lives in a luxury property on the beach in Surfers Paradise & lives on $1000 a week. Hanover Finance, co-founded by Mr Hotchin and Eric Watson, froze $554 million of investors' money in July 2008. He withdrew an application for more than $1000 a week [ he needed $7000], and Justice Helen Winkelmann refused an application to allow him to transport a Mercedes and a Porsche to Australia, jewelry etc. The investors have only themselves to blame for going with Allied. They should have listened to Bruce Sheppard!!!!!

A $35-million case against Hanover Finance directors in March 2012 could see the high flyers & others getting charged. The proceedings relate to statements made in the December 2007 prospectuses & is a start.Action by the FMA under the Securities Act was being taken against Hotchin, Watson, Greg Muir, Sir Tipene O'Regan, Bruce Gordon and Dennis Broit the characters involved in Hanover.

SO WHATS THE ANSWER BONDS??

NZ Bonds are a fixed interest investment wher one lends money but does not have shares in the company itself unlike buying shares. They can be liquid and usually for a set term at a set rate but this can change. Liquid allows you to sell bonds via an exchange like shares. You can sell before maturity and if the bonds interest rate has dropped then you make more money but if they rise then you lose. Usually amount of interest doesn't change unless its a floating or pertpetual rate bond. If you hold till maturity the your initial capital value has no impact at all. However never buy from newspapers as all good bonds are snapped up by Brokers who on sell. Interest is paid on a semi annual compounding & better than Bank term deposits. A bond is a certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date. Basically one is making a loan to the government or corporation and gets paid a sum of money in the future for letting the government or corporation borrow the money. Bonds are one way the government raises money besides taxes.

OR BANK TERM DEPOSITS:

Well no to this as interest rates are lower than anywhere else & if you quit earkly then the Bank may levy fees as well as a lower interest rate but if you dont mind the interest rate you can allow some funds to be placed in term deposits. But be sure of the timeframe over which you wish to invest your money as you might need it early. The more often interest is both calculated and credited, the more you will earn. For example, $10,000 invested for five years with interest calculated daily then credited monthly will earn significantly more interest than if interest were calculated quarterly and credited annually. The best investment you can make is to pay off your debts. Why pay 9 per cent on your home loan or 18 per cent on your credit card and earn just 3 or 4 per cent on bank savings. Every $100 you use to pay off your debts is another $100 you are not paying 9 or 18 per cent interest on. Remember, a dollar saved is a dollar earned.

OR STOCKS:

Stock shares are traded, bought and sold at a stock exchange. They allow the stock owner to share in the profits of a company. These profits come in the form of dividends, which are allocated according to how much stock one holds in the company. Of course one of the disadvantages is that one can lose money if a stock's price goes down.

[ Read more about Watson & Hotchin Hanover ] [ Ponzi scam gets Hotchin ] [ Pansy Wong Bad or good ] [ Save NZ Farms for Kiwis: STOP ] [ Building Tax depreciation NZ ] [ Hubbard vs Securities Commission ] [ Finance Report July 2010 ] [ Banks & Subprime Mortgage ] [ Finance Companies 2010 ] [ Property Report May 2010 ] [ Buying Mortgagee Property Tips ] [ Kiwisaver good or bad Providers ] [ George Soros Mortgage answers March 2010 ] [ USA Printing $$$$ 2010 ]

WHY ARE MANUFACTURERS & BUSINESSES LEAVING NZ: [ Read the story ] The issues are economics nothing else and many a time the owner is blamed for moving when in fact he has no say in the matter otherwise he will go bust. However read the reasons why NZ has lost the plot ---[ Compare to Thailand ] & why more factories are heading abroad now. It makes sense.[ Check WHY THAILAND ] is better for Manufacturers & any Kiwi Company. Why NZ is lost [ NZ Deficit increases ] Yes we owe money????? [ Government $250m a week borrowing ] [ Transmission Gully Impact costs ] [ Kiwi Family Savings Plan ] [ Benefit cuts good or meaningless ] [ Quit smoking-heres how ] [ Levin Business dying ] [ NZders lose out ] [ World population exploding ]

" Invest in finance companies--- crazy--- they can do what they like with your $$$$ "

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