About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, May 29th, 5:56PM
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

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Today's Best Bank Rates
RaboDirect 4.30  
Based on a $50,000 deposit
More Rates »
News Bites
Latest Comments
  • FMA starts major investigation into churn
    “Does anyone know if the Banks are included in this fishing exercise? And how will the FMA be able to differentiate between...”
    21 hours ago by I was wondering
  • Getting to know...Peter Leitch
    “And a thoroughly nice guy to boot. "Good on yer, Peter! We need more advisers of your ilk" (Wonder how many will scurry...”
    22 hours ago by Robert Oddy
  • Did issues paper miss opportunities?
    “This response is an attempt to get some debate going here. Angus is reported as making 3 major points here. I would grade...”
    22 hours ago by Murray Weatherston
  • Getting to know...Peter Leitch
    “Never met the Mad Butcher, I am sure he is a nice chap. I have met this Peter Leitch and he is definitely a nice chap; and...”
    22 hours ago by Giles Thorman
  • New Zealand advisers won't dodge bullet: Rickerby
    “The reality is and any decent broker knows it, Life Insurance is more of a commodity these days with guarantees of upgrade...”
    1 day ago by Mark Ogden
Subscribe Now

Deposit Rates newsletter

Previous News

MORE NEWS»

Most Commented On
News Quiz

Along with Good Shepherd NZ, Ministry of Social Development and The Salvation Army which bank is involved with the No Interest Loan Scheme (NILS)?

BNZ

ANZ

Westpac

ASB

Kiwibank

MORE QUIZZES »

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