Allied Farmers to renegotiate bank facility in Nationwide fall-out

Wednesday 25th August 2010 1 Comment

Allied Farmers will renegotiate the terms of its bank facility now its finance company subsidiary is in receviership.

The company, which took on the troubled Hanover finance company loan book at the end of last year, is in discussions with its lender Westpac and the lead manager of its rights issue after the collapse of its finance unit sparked the need for new negotiations over its restructuring initiative and debt retirement.

The firm has senior debt totalling $16.9 million, made up of a multi-credit facility of $14.4 million and an overdraft of $2.5 million.

On Monday, chairman John Loughlin stepped down from the board of Allied Farmers in the wake of the Allied Nationwide receivership.

The finance unit owed about $130 million to some 4,500 investors, and was covered by the government’s retail deposit guarantee.

The shares, which are regularly the most viewed stock on the NZX website, fell 3.6% to 2.7 cents.

Businesswire.co.nz

Comments from our readers

On 26 August 2010 at 9:29 am B Brown said:

Any comment from all those who favoured Hanover's moratorium? Can any one name a moratorium that has worked to the advantage of the investors?