Knowledge

Mark Hotchin

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predicated on the recovery of the New Zealand property market. Hotchin and Watson pledged a property, benefits and cash package worth up to $ 96m to investors as part of the deal. By November 2009 accountancy firm PwC estimated that the package had fallen in value to between $ 36 million and $ 56 million, due to a fall in property prices. Over the first year of the debt repayment plan, six cents in the dollar was repaid to investors, however the property market had continued to worsen and it appeared the company was heading for receivership.
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As a result of the FMA's announcement former Hanover Finance's chairman Greg Muir issued a media statement saying that "the FMA investigators were given a substantial amount of evidence demonstrating that the directors conducted themselves responsibly, with appropriate rigour, and made judgments they
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In 2009 Hanover was approached by Allied Farmers to buy the assets of Hanover Finance and United Finance, effectively held in limbo by the repayment plan. In December 2009 Hanover Group debenture holders, note holders and bond holders were given another opportunity to vote for receivership or for the
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Hotchin's interests ranged outside the traditional finance company model. In 2003 Hotchin through the Hanover Group bought a 10% stake in Tower, a large fund management and insurance business. Hanover wanted a better deal for investors and forced Tower and owners GPG to review the capital raising and
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and nervous reaction of investors lowered overall confidence in the market and saw over 50 finance companies in New Zealand fail by 2010. Hanover applied to the trustee for a repayment freeze or moratorium rather than a receivership. After the repayment freeze Hanover prepared a debt repayment plan,
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bought Elders Finance in 1999. Elders, and a number of other finance companies, were brought together to create Hanover Group. With $ 650 million in assets, this was New Zealand's third largest finance company at the time. In 2007, Forbes listed Hotchin and Watson as the 33rd and 34th richest people
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Hotchin's property development work depended on borrowing from finance companies and banks. Hotchin saw an opportunity to lend to developers like himself and bridge the gap between bank funding and equity funding. This coincided with a boom in the housing and construction market in NZ throughout the
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As a result of the continuing worsening global financial crisis in July 2008 Hanover Finance and United Finance froze repayments of NZ$ 554 million owed to 36,500 investors. After a vote over 85% of investors agreed to a debt repayment plan for the return of their capital over a 5-year time scale,
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In 2007 Hanover Group made an after tax profit of $ 105m. Controversially Hanover Finance paid NZ$ 45.5 million in dividends to Hotchin and Watson in the year ending 30 June 2008. Much of these dividends were then reinvested back into the company to reduce related party transactions, which at the
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With Eric Watson he bought 30 per cent of Elders Finance in 1999 and in December that year bought it outright. Elders Finance became the core of what would become Hanover Finance. Two years on, their other finance and investment assets (Nationwide Finance, Leasing Solutions, Elders Home Loans and
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In late December 2011, the Financial Markets Authority (FMA) announced that it proposed to file civil proceedings against the directors and promoters of Hanover Finance Limited and other companies relating to statements made in the December 2007 prospectuses and subsequent advertisements.
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In December 2012, the remaining property assets of Hanover and United Finance (with a book value of $ 13.5 million) were transferred from Allied Farmers to Crown Asset Management, the entity set up to hold assets from failed finance companies backed by the Government's deposit guarantee.
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Amongst the most controversial of his New Zealand assets was an unfinished house on the upmarket Paritai Drive, in the Auckland suburb of Ōrākei. This house has been the target of much of the public's ill-feeling towards Hotchin. In 2009, pizza company
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new plan with Allied. 75% voted in favour of swapping their debentures, notes and bonds for shares in Allied Farmers Limited. This transaction resulted in Allied Farmers assuming the net asset position of the Hanover Group finance companies.
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Hotchin first bought and subdivided a house for profit in 1982 when he was 23 years old. He then did an increasing number of such subdivisions. In the 1990s, he bought Regency Court in the Auckland suburb of
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Hotchin arranged for Allied Farmers to take over the failing business, but the losses overwhelmed the new owner and the business was put into liquidation in 2010. In December 2011 the
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Allied Farmers put their finance company Allied Nationwide into receivership on 20 August 2010 and as at March 2011 shares in were worth only a fraction of what they were traded for.
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offering to repay investors over a 5-year period. As part of the plan, Hotchin and Watson pledged $ 96 million of assets. These assets fell in value as property prices declined.
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When Mark Hotchin left school he worked in his father's factory. His first business was a sports goods store, which got into financial trouble and was rescued by his father.
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claim Mr Graham's company, Facilitate Communications, paid Slater $ 6,555 a month. Slater obliged by writing a series of highly critical blogs about Feely in late 2011.
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was forced to resign and an investigation launched into her role after an email was released alleging that she was directly involved and "gunning" for Adam Feely.
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for $ 6 million, selling it later for $ 10 million. He bought the successful taxi company Corporate Cabs, expanded it and sold it in 1999 to former
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In 2011 Hotchin decided to sue the country's biggest newspaper, the New Zealand Herald, for aggravated and punitive damages.
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believed were in the best interests of the company and its investors on the information available to them at the time."
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Beach Estates and golf course, and acquired completed lots at the Jacks Point property sub-division in
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Hanover Securities) were rolled in to create Hanover Group with reported assets of $ 650m.
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set up a large billboard on a trailer outside the house to advertise pizza based on the
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David Long, Brad Walter, Aaron lawton, "Billionaire Owen Glenn buys into Warriors",
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The Hanover Group also had interests in property and was responsible for developing
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Marvin France, "NZ Warriors sold to Carlaw Heritage Trust and Autex Industries",
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former property developer and financier. He was a director of the failed
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but later sold his stake to Watson, who later, for a period, had
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Judith Collins resigns: The money men and how they toppled her
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appear to show that Hotchin secretly paid right wing bloggers
482: 480: 463:"Hanover profit linked with boosted Australian loan book" 110:, United Finance, Nationwide Finance and FAI Finance. 106:
which owned a number of finance companies including
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Cunliffe: Dirty Politics allegations like Watergate
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He bought 1: 969:McManus, Jenni (9 May 2011). 932:McManus, Jenni (5 May 2011). 444:"Spring thaw at Jacks Point?" 361:"Hotchin: I may never return" 206:Hotchin and business partner 98:(born 25 December 1958) is a 1061:Businesspeople from Auckland 842:, NZ Herald 15 August 2014. 277:Financial Markets Authority 138:Financial Markets Authority 130:financial crisis of 2007–08 128:The flow on effects of the 1077: 1031:New Zealand businesspeople 854:, NZ Herald 31 August 2014 252: 199: 192:early part of the 2000s. 148:Mark Hotchin was born in 69:Founding finance company 448:National Business Review 1010:(Retrieved 26 May 2018) 994:(Retrieved 26 May 2018) 818:, Stuff 31 August 2014. 702:"Hanover details plans" 181:Matarangi Beach Estates 144:Early life and business 796:The New Zealand Herald 365:The New Zealand Herald 319:Securities Commission 326:New Zealand Warriors 273:Serious Fraud Office 96:Mark Stephen Hotchin 22:Mark Stephen Hotchin 958:. 15 December 2010. 519:. 30 November 2009. 494:. 21 November 2011. 956:New Zealand Herald 744:New Zealand Herald 725:New Zealand Herald 680:New Zealand Herald 654:New Zealand Herald 590:New Zealand Herald 565:New Zealand Herald 540:on 8 February 2013 473:on 1 October 2011. 411:New Zealand Herald 60:Property developer 921:on 23 March 2012. 864:Smith, Lawrence. 492:The Dominion Post 305:seven deadly sins 187:Finance companies 162:St Paul's College 158:Marcellin College 93: 92: 1068: 1011: 1001: 995: 985: 979: 978: 966: 960: 959: 948: 942: 941: 929: 923: 922: 917:. 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Index

New Zealander
Property developer
Hanover Finance
New Zealand
Hanover Group
Hanover Finance
Matarangi
Queenstown
financial crisis of 2007–08
Financial Markets Authority
Auckland
Onehunga
Marcellin College
St Paul's College
Saint Heliers
Skellerup Group
Matarangi Beach Estates
Hanover Group
Eric Watson
Dirty Politics
Fairfax Media
Cameron Slater
Cathy Odgers
Serious Fraud Office
Financial Markets Authority
Nicky Hager
Justice Minister
Judith Collins
Hell Pizza
seven deadly sins

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