A charitable trust associated with Allan Hubbard, the ex-chairman of South Canterbury Finance, provided interest-free loans to a range of business people after borrowing funds from Aorangi Securities.It may be noted that Aorangi Securities was placed into statutory management along with Hubbard and his wife, and some charitable trusts including Te Tua.The charitable trust Te Tua has a loan portfolio of around 170 loans. Apart from some or all of the loans being interest free and some likely impaired, they were also not backed by adequate paper work. In such a scenario, statutory manager Grant Thornton believes returns to Aorangi will be reduced. The company had total assets of NZ$132 million when it was put under statutory management, with investors' contribution at around NZ$96 million.A further risk for Aorangi investments stems from the nature of loans given by the company. Most of the investments made to businesses associated with Hubbard are to farm businesses that have loans from banks secured by a mortgage over the assets of the farm. This entails a risk that Aorangi does not recover all the money due to it."There is an intricate and complex intermingling of affairs which will take some time to work through," Grant Thornton said in the concluding line of its report.