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Allied Farmers may be liquidated

Beleaguered lender Allied Farmers, which faces two separate statutory demands totalling more than $4 million, says it could be put into liquidation if a repayment proposal can’t be agreed on.

Monday, March 4th 2013, 1:34PM 1 Comment

by Niko Kloeten

Allied received its first demand, by an undisclosed creditor, for $540,000 on February 11 and the 15 working day period to pay back the money comes to an end today (Allied has also received a statutory demand for $3.7 million from Inland Revenue).

“The obligation subject of the demand is secured over an Allied Farmers Investments (AFIL) loan asset that is in default,” Allied said today in an NZX announcement.

“ALF/AFIL had intended to use the proceeds of the loan asset to repay the Creditor, but because of the underlying default, has not been able to do so.”

Allied said it was continuing to work with various parties including its secured lender, the government entity Crown Asset Management, on a repayment proposal that will be acceptable to the creditor.

“The Creditor has said that in the absence of an acceptable arrangement, it may shortly move to the next step. The next step would be applying for orders appointing liquidators to ALF and AFIL,” Allied said.

“Allied is hopeful that a proposal can be agreed prior to the Lender moving to the next step, and will update the market further as the matter progresses.”

Meanwhile, Allied has reported an unaudited operating loss of $5.5 million for the six months to December 2012, compared to a $9.0 million loss for the same period the previous year.

The company said it had made significant progress during those six months by continuing to sell non-core assets to retire secured debt, which it reduced from $23.0 million to $7.5 million during that period.

It also reduced corporate and funding costs to $1.2 million in the six months to December 2012 compared to $3.0m for the prior period.

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

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Comments from our readers

On 21 April 2013 at 2:16 pm J Bickerton said:
What a shame that most Hanover investers voted for an Allied buy out. I am sure if Hanover was liquidated at the time we would have ended up with more then the present 2cents!! a share.

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