The Securities Commission will meet before Christmas to decide whether criminal charges will be laid against Hanover Finance.
The commission today said its investigation into Hanover Finance Ltd, United Finance Ltd and Hanover Capital Ltd was near completion. Though no decisions had yet been made, it was likely any charges would be laid in the new year, the commission said.
The statement comes as Hanover Finance and Allied Farmers publicly criticise each other over asset "mismanagement". Allied Farmers purchased assets and loans from Hanover Finance and United Finance, the value of which has since been drastically written down.
Allied Farmers managing director Rob Alloway was critical of the valuation of the assets while in Hanover's hands, while in a statement yesterday, Hanover director David Henry said "Mr Alloway and the rest of the Allied board have managed assets poorly".
"Hanover Finance is dismayed at Allied Farmers' attempt to blame others for its own mismanagement, and failure to deliver on its promises, most recently forcing Matarangi Beach Estates into receivership," Mr Henry said.
"It is with regret that we have for nearly 12 months now seen the continued deterioration of the value of the assets transferred whilst under the management and ownership of Allied."
"These assets seem to have been sold with urgency to meet the distress in Allied's own financial position with the obvious adverse consequence to the former Hanover investors."
Matarangi Beach Estates Ltd was placed under receivership after it received a notice from HSBC cancelling its loan facility, requiring the $19 million loan to be repaid.
NZPA