Sharechat Logo

Allied Finance misses repayment of debentures

Friday 20th August 2010 1 Comment

Text too small?

Allied Farmers said its Allied Nationwide Finance unit missed a deadline to repay debentures yesterday and has sought an extension of time to remedy a breach of a Trust Deed ratio which is due to expire today.

The ailing financial group is awaiting a response today from the trustee, New Zealand Guardian Trust, which has the power to make or break the company under the terms of the deed.

Allied's fortunes have collapsed in the wake of its acquisition of financial 'assets' from Hanover and United, which are worth less than a quarter of the purchase price paid with a massive issue of new shares.

"Up until yesterday, Allied Finance had continued to meet all its financial obligations, including repayment of maturing debentures," chairman John Loughlin said in a statement.

"However, as the capital and funding initiatives under consideration by the Allied group require third party commitments and NZGT approvals which had not been received by last night, it has transpired that Allied Finance did not pay debenture maturities due for payment yesterday," he said.

Allied Finance expects to complete "an initial transaction today" that will result in payment of debenture maturities now due and has asked Guardian Trust to agree to the transaction and grant "a short extension to the deadline originally imposed".

Allied said it will make a further statement today once it has heard friom Guardian Trust. When the Trust Deed breach was disclosed last week, on the ratio of total liabilities to total tangible assets, Allied said it didn't agree with Guardian Trust that a breach had occurred.

Its shares last traded at 2.7 cents and have shed 73% of their value this year. More than 95% of the stock is held by former investors in Hanover and United.

  General Finance Advertising    

Comments from our readers

On 20 August 2010 at 1:15 pm paul said:
what another disgrace...and they say investing in houses isnt a good thing... just wait and see what happens to SCF if they cant see the light of day...
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:

Allied Farmers may lift loan book value by $276K as IRD lurks with liquidator's axe
Allied Farmers sells Taranaki real estate unit worth 26 percent of group's value
Fire sale of toxic loans keeps Allied Farmers ticking for now
Allied Farmers tries to cobble together loan repayment as liquidation hovers
Lender runs out of patience, seeks $500k loan repayment from Allied Farmers
Crown Asset Management keeps Allied Farmers on life support
Allied Farmers' auditor refuses to give opinion on accounts
Allied Farmers granted waiver for $1.2M loan for bobby calf business
Allied Farmers wears more post-Hanover cost and delay
Allied Farmers lifts provision for loan guarantee to $1.4M