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

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
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.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.