Sharechat Logo

Allied Farmers CEO follows chairman out the door

Friday 3rd September 2010

Text too small?

Allied Farmers chief executive Rob Alloway has resigned, following chairman John Loughlin out of a firm whose finance arm is in receivership, and whose bloated share registry reflects its exposure to failed finance company assets. 

Alloway will step down in December, while remaining on the board in the meantime, the company said in a statement.

Under Loughlin and Alloway, the company purchased 'investment assets' from finance companies Hanover and United. Those assets were worth some $400 million and are now valued at $94.3 million.  

Allied paid for the loan books by issuing some 1.9 billion of new shares at about 20 cents apiece, flooding a share register that previously had 37.7 million.

The stock traded at 2.5 cents today. 

"The time was right to step down from the hands-on, day-to-day role of running the business as the restructuring process which began about a year ago was nearing completion," Alloway said. 

"With the restructuring process now coming to an end and several asset realisations likely in the short term, the company will be in a different position in December when I step down," he said.

"My key goal was to establish a more stable financial platform and normalise the company's banking and other commercial arrangements."  

The 13,800 Hanover and 2,600 United investors were hoping for full repayment when they approved a moratorium in 2008. They own about 98% of Allied Farmers.

 Alloway said further asset sales will leave the company with "substantially reduced senior debt." 

"We've had to make some very tough decisions along the way but we are now close to reaching the stable ground we need to rebuild what I still believe will be a very sound and respected rural services business," Alloway said. 

The company is now looking for a new chief executive.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Telecom will offer CEO and senior managers performance equity grants to boost profits
Former Fonterra executive Alison Andrew appointed to head Transpower
MRP director Miller, CFO Meek go trawling for cheap shares
Rob Fyfe to leave Trilogy board, seeks new senior role in NZ
David Ross appears at District Court hearing, remanded until Aug.29
Crown drops charge against ex-SCF finance chief Graeme Brown
Postie Plus appoints No 1 Shoes executive Binns as new CEO
Pumpkin Patch CEO Neil Cowie resigns to take job with rival retailer
George Alexander Louis
Time to Move Before You Get Caught in the Meridian Watershed