ANF investors won't get their money back
Investors holding the listed perpetual bonds of Allied Nationwide Finance Ltd., the failed finance unit of Allied Farmers Ltd., won't get their money back, as the securities are not covered by the government's guarantee.
Friday, October 22nd 2010, 10:30AM
by BusinessDesk
Receiver Andrew Grenfell of McGrathNicol said in his first report that the $13.5 million in bonds were subordinated, unsecured debt and not eligible for the retail deposit guarantee.
However, some 4,500 debenture and deposit holders with $128 milliion invested are covered by the guarantee.
It isn't clear whether the government will claw back any of that sum.
"We have omitted our realisation estimate of the assets as we believe that their inclusion could materially prejudice the exercise of our functions and in particular our duty to obtain the best price reasonably obtainable for the company's assets," Grenfell said.
The report came out the same day parent Allied Farmers said it had repaid its term loan with Westpac Banking Corp., and had restructured its related party debt with its subsidiary into secured loan facilities.
Allied Farmers owed almost $12 million to its failed finance unit, as at Aug. 31. The shares climbed 0.6 cents to 2.1 cents in trading today.
| « PGG Wrightson taps banks for new funding | Strategic Finance loan book sale stalls » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
