Former Hanover Finance shareholders Mark Hotchin and Eric Watson have settled their defamation suit against the New Zealand Shareholders Association and continue to pursue its former chairman Bruce Sheppard.
The association awarded its 2010 Golden Glob award to the two businessmen in 2010, a gong it gives out for “appalling corporate practise.” Sheppard gave media interviews in 2009 where he suggested the pair didn’t act correctly over Hanover’s debt restructuring proposal.
Hanover Finance froze $554 million of funds for its 17,000 investors after running into financial difficulties before convincing them to accept a disastrous deal where their debt was swapped for equity in Allied Farmers.
The Shareholders Association “accepts that Mr Sheppard’s comments were incorrect,” The NZSA said in a statement. The association “regrets any adverse public sentiment as a result of the comments.”
The NZ Herald reported that the settlement with the NZSA was ‘a six-figure settlement.’