Allied Farmers discloses borrower default

Friday 25th March 2011 1 Comment

Allied Farmers said it will need to write down the book value of loan on a property in Silverdale in the Rodney District after the borrower defaulted.

Allied Farmers Investments (AFIL) had been informed by lawyers for Hong Kong-based lender Asian Syndicate Finance that borrower Honk 2 Ltd, an investment vehicle of Andrew Tauber and Paul Webb, would default on a secured loan on the 59ha property.

AFIL holds a second mortgage over the property, relating to a NZ$23 million loan made to Honk 2 Ltd by Hanover Finance in March 2009. A valuation indicated that Allied may need to write down the book value of the loan but the carrying value of the loan was still being assessed.

AFIL has also been supporting Fletcher Construction in its bankruptcy action against property developer Nigel McKenna.

AFIL was unwilling to support the creditors' proposal put forward by McKenna, which should result in bankruptcy being declared at the hearing on April 19.

The bankruptcy of McKenna would have no impact on AFIL's carrying value of the loan, as it has been previously written down to zero.

NZPA

Comments from our readers

On 26 March 2011 at 11:33 am Ivan said:

More good news for the poor old Hanover investors.Still Allied's bosses will still get their big pay cheques up till the company goes under.