Hotchin struggles on $1000 a week

Amanda and Mark Hotchin File photo

Hanover Finance founder Mark Hotchin says he cannot afford to live on $1000 a week.

Hotchin, whose New Zealand assets were frozen last week by the Securities Commission, is threatening to take the case to the High Court as he negotiates with the commission to increase the allowance, the Dominion Post reported today.

The commission's $1000-a-week allowance is expected to cover legal costs, rent and mortgage payments, and food and other household expenses.

Hotchin was supporting seven people and could not live on the $1000 amount, his lawyer Bruce Stewart, QC, said.

His client was also trying to get hold of a Securities Commission report about Hanover and its directors prepared by Christchurch forensic accountant David Crichton.

The commission has refused to release the report or discuss its contents with Hotchin and his lawyers.

Last Friday the High Court granted the commission an application, without notice, to freeze Hotchin's New Zealand assets.

The order included his bank accounts and $13.5 million property on Waiheke Island and his highly-publicised $30m unfinished mansion on Paritai Drive in the Auckland suburb of Remuera.

Hotchin intends to fight the orders and a hearing is expected in February.

Hanover Finance and its associate, United Finance, froze some $554 million of investors' funds in 2008.

Investors agreed to a moratorium proposal but were later asked to swap their fixed income securities to new shares in Allied Farmers.

Allied Farmers has drastically written down the value of the assets and Hanover and Allied have been criticising each other, alleging mismanagement of the assets.

Hotchin is in Australia and is living at an upmarket, four-storey beachfront apartment on Queensland's Gold Coast, the paper reported.

- NZPA