Allied Nationwide taps parent for another $5 million
Allied Nationwide Finance, the subsidiary of Allied Farmers which bought the Hanover loan books in a debt-for-equity swap last year, will tap its parent for more support to cover any losses on existing and future impaired loans.
Tuesday, June 1st 2010, 9:04PM 
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by Paul McBeth
The finance company said Allied Farmers will double its credit support facility to $10 million after Allied Nationwide announced it expects to recognise total loan provisions of about $10.7 million in the six months ended June 30 this year.
The provision is subject to audit, and the increase in the facility still has the final approvals to be obtained.
Allied Farmers wrote down the value of the Hanover loan books by a further $33.6 million to $51.5 million, with a third of the assets still waiting to be revalued.
The impairment puts the fair value at approximately $124 million for the net assets acquired from Hanover, down from $175.5 million in the Dec. 31 financial statements.
Since writing down the loan books' value at the end of last year, Allied Farmers has netted some $3.4 million by selling properties at the Jack's Point development near Queenstown, and an industrial development in New South Wales.
Paul is a staff writer for Good Returns based in Wellington.
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