Bloomberg News

New Zealand Regulators File Legal Suit Against Hanover Directors

April 01, 2012

The Financial Markets Authority of New Zealand said it filed civil proceedings against directors and promoters of Hanover Finance Ltd., Hanover Capital Ltd. and United Finance Ltd. relating to statements made in December 2007 prospectuses, subsequent advertising and the March 2008 prospectus extension certificate.

The regulator is seeking declarations, pecuniary penalty orders and compensation for investors who made investments during the period Dec. 7, 2007, to July 22, 2008, it said in an e-mailed statement today.

Hanover was the largest of more than 20 New Zealand non- bank lenders that failed as the collapse of the U.S. housing market and losses on subprime mortgages sparked a global credit squeeze in 2008.

To contact the reporter on this story: Soraya Permatasari in Melbourne at soraya@bloomberg.net

To contact the editor responsible for this story: Paul Tighe at ptighe@bloomberg.net


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