Allied Farmers collects $2.45m from Bridgecorp's receiver

Allied Farmers has been paid $2.45 million from Bridgecorp's receiver as final settlement of a loan made by Hanover which Allied Farmers had completely written off.

Tuesday, July 26th 2011, 5:00PM

by Jenny Ruth

The proceeds will go to the receiver of Allied Farmers' former finance company, Allied Nationwide Finance. Allied Farmers owes the finance company $7.5 million. The receiver allowed Allied Farmers to avoid receivership by extending the due date from July 1 to March 31 next year.

Allied Farmers says the loan proceeds had been withheld because of claims against Bridgecorp by the Inland Revenue Department.

Even after the IRD withdrew its claim in May, the funds were held in a solicitors trust account.

Allied Farmers says it is currently receiving updated valuations of the Hanover loans - it bought them in late 2009 when they were valued at

$396 million At December 31 last year, they had been written down to just below $110 million.

"Whilst the receipt of the Bridgecorp proceeds is pleasing, until the assessment of the value of all assets is completed the board is unable to form a view on the overall impact the receipt of these proceeds will have on the year end financial result," Allied Farmers says.

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