About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, September 3rd, 7:55AM
rss
Latest Headlines

IRD demand adds to Allied’s woes

Allied Farmers has been hit with a second statutory demand in the space of a fortnight, this time by the Commissioner of Inland Revenue for $3.7 million.

Monday, February 25th 2013, 3:17PM

by Niko Kloeten

The demand has been served on Allied Farmers Rural Limited (AFRL), a wholly-owned subsidiary of Allied, and it must be paid or a compromise reached within 15 days or the IRD can begin liquidation proceedings.

The receipt of the statutory demand is an enforceable event of default under ALFs secured loan facility with government-owned Crown Asset Management Limited (CAML), which has indicated that it is continuing to reserve its rights and remedies.

Earlier this month, on February 11, Allied received a demand for $500,000 from an un-named creditor, due this Friday.

Allied said AFRL had been in dialogue with the IRD – which has indicated that any proposal would require CAML approval - for some time on presenting a proposal to repay the debt. 

It said it had advised IRD on February 14 that discussion with CAML was on-going.

“AFRL is therefore surprised that the statutory demand is dated 14 February 2013 (although not served until now) and AFRL was not given the opportunity to provide the IRD with a CAML supported proposal before this action was taken,” Allied said in an NZX announcement.

“AFRL believes that it will be able to complete a proposal for repayment of the debt on terms satisfactory to the IRD and with the support of CAML, given that the continued trading of AFRL would ultimately result in a superior return for both the IRD and CAML."

CAML bought most of Allied’s remaining ex-Hanover assets last year at book value of $13.5 million.

Allied’s share price fell 0.8c to 1.2c in early trading today.

Niko Kloeten can be contacted at niko@goodreturns.co.nz

« BNZ calls in $450m of notesNZF payment freeze to continue »

Special Offers

Comments from our readers

No comments yet

Add your comment:
Your name:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Good Returns 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.

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
RaboDirect 4.60  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • 800 AML returns sent to FMA
    “Maybe those 50 entities have concluded it is an absolute nonsense. ...”
    5 hours ago by Stan walker
  • 800 AML returns sent to FMA
    “I'm now curious as to how all of the submitted information will be used by the FMA. My review of the questionnaire was...”
    6 hours ago by Pragmatic
  • What’s the point of independent advisers?
    “I agree with John’s view that independent financial advisers have a key role to play in the market. At ANZ we fully support...”
    21 hours ago by John Body
  • Bank advice 'an area of concern'
    “A few weeks ago, I provided advice to a new client in a comprehensive financial plan. There were numerous recommendations,...”
    21 hours ago by AFA Muggins
  • New course for mortgage advisers
    “I would like to join the course, I have recently registered my self as a RFA ...”
    21 hours ago by Dilkhush Surani
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
News Quiz

What is the name of a new website aimed at improving the financial literacy of New Zealanders?

Get Smart

Money Sorted

Be Dollar Wise

Financial Literacy for You

The Exchange

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com