Allied Farmers writes down Hanover assets further

That was down from its $20.6 million loss in the same six months of 2010. Most of the latest losses were from the restructuring of its rural division.

The investment division made a $4.2 million loss, down from $13.6 million in the previous first half, which included a further $3.6 million write down of the Hanover assets.

The company says this was because several of the properties over which it held second mortgages were sold by the first mortgagee.

The investment division "still has some loans that may prove difficult to collect. However, the larger part of the asset base is now the property assets including 81 sections at Jacks Point in Queenstown for which there is steady inquiry."