GENERAL: ALF: BANKING FACILITIES UPDATE

25 Aug 2010 4:46 pm

ALF 25/08/2010 GENERAL

REL: 1646 HRS Allied Farmers Limited

GENERAL: ALF: BANKING FACILITIES UPDATE

BANKING FACILITIES UPDATE

On 23 July 2010 Allied Farmers announced that the extension of its Westpac banking facilities to 31 March 2011 was granted as part of an agreed series of debt retirement and restructuring initiatives, and that these initiatives had agreed milestones, which, if not met, would result in Westpac having its usual rights as lender.

On 20 August 2010 Allied Farmers announced that its wholly owned subsidiary, Allied Nationwide Finance Limited, had been placed into receivership by its debenture holder trustee, NZ Guardian Trust.

The Allied Nationwide Finance receivership has meant that the milestones for the agreed Allied Farmers debt terms, including debt retirement and its restructuring initiative, will require renegotiation.

Allied Farmers is in constructive discussions with Westpac and the lead manager of its previously announced rights issue.

Allied Farmers notes some media speculation today on the extent of its senior debt to its senior lender Westpac. Allied Farmers wishes to ensure the market is correctly informed. Allied Farmers currently has senior debt totaling $16.9 million, consisting of a multi option credit facility of $14.4 million, and an overdraft of $2.5 million. End CA:00198827 For:ALF Type:GENERAL Time:2010-08-25:16:46:17

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