Hanover victims gather on Facebook

Mark Hotchin. Photo / Richard Robinson

Burned Hanover investors have launched a Facebook page called "Handover" in a bid to provide themselves with an online voice and supporters' group.

Launched by investor advocacy group EUFA (Exposing Unacceptable Financial Activities), the site explains its name by stating that investors did a big "hand over" of their funds to the "Wats-hot" investment model - a play on Hanover co-founders' names Mark Hotchin and Eric Watson.

It also warns: "When things are HOT we should not touch them."

EUFA assistant co-ordinator Lyn Mason said the site was a good way for investors to communicate with others in a similar position.

"Over 60 finance companies in the last four years have hit the wall and the investors, being decent New Zealanders and who have been true Kiwi savers, have often been too ashamed to speak up and have suffered in silence," Mason said.

"We invite Hanover investors/supporters to join the Facebook page about 'Handover' which enables you to contribute and voice your opinions."

So far 19 people have signed up to the page.

Hanover Finance collapsed in July 2008, freezing $550 million owed to 16,500 investors.

Its assets were then sold to Allied Farmers in a debt for equity swap at the end of 2009 in a deal worth $396.2 million.

Allied has since written the value down to just $94.3 million and its share price has plummeted.

The Securities Commission and the Serious Fraud Office are investigating Hanover and its directors and before Christmas the commission took the unusual step of gaining a High Court order to freeze certain assets owned by Mark Hotchin.