Hanover investors seek injunction

The pressure group Exposing Unacceptable Financial Activities (EUFA) said its members had worked "tirelessly" with Barrister Paul Dale and others on the injunction application. Shareholders Association chairman Bruce Sheppard has offered Dale an affidavit in support of the injunction application.

EUFA coordinator Suzanne Edmonds said investors needed more time and independent information and advice before voting on such an important issue.

Hanover's 16,500 investors had their $554 million frozen on July 23. A hearing would be held at the High Court in Auckland on Monday.

Last month Hanover revealed a debt restructuring proposal that aims to repay investors over five years. It involves a controversial $96 million package of cash and property contributed by shareholders Mark Hotchin and Eric Watson.

Investors are set to vote on either passing the restructuring proposal or putting the group into receivership next Tuesday morning at Auckland's Ellerslie Event Centre.

However, Edmonds said Hanover was "rushing through" the vote using an "elaborate, sophisticated and elite public relations and marketing machine" to entice investors.

"Much like the dahlia bulbs and gardening tool kits they used to entice a very trusting generation of investors who they carefully targeted," Edmonds said.

This afternoon Hanover spokesman Geoff Senescall said the finance company had not been served with any documents but if it was it would "strenuously oppose" any action.

More than half the group's investors had already voted on the restructuring proposal and there had been "strong support" for it from them. Road shows around the country had been attended by about 3000 people and around 1000 were expected at Tuesday's meeting.

"EUFA have not approached us with any queries or requests," Senescall added.

The details of the restructuring plan were available on Hanover's website and any delay to the meeting could put the first repayment to investors, scheduled for March, in jeopardy.

Meanwhile EUFA was also appealing to new Minister of Commerce Simon Power to put Hanover into statutory management, Edmonds added.

"[However] it would be difficult for any government to overturn the will of the people who may vote due to lack of correct information."