Sharechat Logo

Allied Farmers tries to cobble together loan repayment as liquidation hovers

Monday 4th March 2013 2 Comments

Text too small?

Allied Farmers, which reported a further $4.1 million writedown on its ex-Hanover Finance assets last week, is trying to cobble together a loan repayment by the end of the day in a bid to stave off a potential liquidation.

The Hawera-based company is in talks with various parties, including secured lender Crown Asset Management on a repayment proposal to a different creditor, who called on a loan to be paid by the end of today. Allied owes $540,000 including interest, secured over a $3.75 million loan asset that it hasn't been able to realise.

"The creditor has said that in the absence of an acceptable arrangement, it may shortly move to the next step," the company said. "The next step would be applying for orders appointing liquidators to ALF (Allied Farmers) and AFIL (Allied Farmers Investments)."

The call on the loan was made last month, and was followed by the Inland Revenue Department making a statutory demand for $3.7 million in unpaid taxes.

Allied is trying to rebuild itself after its disastrous acquisition of financial assets from Hanover and United Finance for $394 million in 2009. It has ring-fenced what's left of the assets in its Allied Farmers Investments unit, which had assets of $25.7 million, according to its first-half accounts.

The shares were unchanged at 1.9 cents today, valuing the company at just $1.7 million.

  General Finance Advertising    

Comments from our readers

On 4 March 2013 at 7:33 pm Shona Duncan said:
Could farmers go to the credit union for finance? At least the government wont be able to change the goal posts.
On 5 March 2013 at 11:20 am Ivan said:
They got all Hanover investors money, and it's still not enough for them. What a dog of a company.
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
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
Allied Farmers narrows loss