Allied Farmers settles Five Mile sale, uses funds to reduce debt

Allied Farmers has settled the sale of its Five Mile property near Queenstown Airport earlier than expected and used the funds to clear most of its debt to Westpac.

Its shares climbed 15% to 3.1 cents after the company said its term debt facility with Westpac has been reduced from $14.2 million to $5.4 million as a result of the sale.

Debt will reduce further, to less than $2 million, as a result of the successful outcome of its MAC Reeves court hearing, it said.

This is a good outcome, given we achieved a price for Five Mile that was within range of the valuation, managing director Rob Alloway said.

Alloway has announced his resignation and is due to step down in December. His departure follows the departure of chairman John Loughlin in the wake of the receivership of the firm’s Allied Nationwide unit.

Businesswire.co.nz

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