Hanover Investors - Fools and Their Money
 

I can't believe that Hanover's investors opted for the Allied Farmers deal. Only just (75.45% vs a required 75%!!!!) but nevertheless, it's done.

These are people who got screwed over big time. Now they've let it happen again!!!

Under the terms of the ill-advised moritorium (as recommended by the then Chairman Greg Muir), if Mark Hotchin and Eric Watkins had failed to repay the dosh by - erm - 2010 - they had to stump up $20m.

Additionally, just before Hanover went pop, Hotchin and Watson paid themselves an illegal dividend of $86m. This would mean jail time anywhere - there were no profits to support the payout.

Meantime, Allied Farmers has no real value - it's shares are worthless but there's a connection with Hanover. Greg Muir was the chairman and face of Hanover, but his career has taken a dive and now he's CEO of an Agri-Tech firm called Tru-Test based in Mt Wellington. The chairman of Tru-Test is John Loughlin. The same John Loughlin who is chairman of Allied Farmers.

If I'd invested in Hanover (and thankfully, I did not!) I'd have (a) checked this out and protested about the connection and (b) thought "to hell the money, put these men in jail!"

As it is, the investors might get 78c in the Dollar if they're lucky and Hotchin (& co!) will be laughing all the way to the bank.