Allied Farmers flags another write-down on Hanover book

Allied Farmers flags another write-down on Hanover book

By Paul Mcbeth

March 25 (BusinessDesk) – Allied Farmers Ltd., which needs to raise new capital to keep itself afloat, is facing another write-down to the value of the Hanover Finance loan-book.

The Hawera-based company said it may need to write down the value of a $23 million loan over a Rodney property development. It holds a second mortgage over undeveloped land at Silverdale, and has been informed by Honk 2 Ltd.’s Asian banking syndicate that the developer is expected to default. Honk 2 is an investment vehicle for developers Andrew Tauber and Paul Webb, who weren’t immediately available for comment.

“It is not possible for us to fully understand the final impact on the carrying value of the loan until the completion of both the new valuation, and/or the sales process is completed,” managing director Rob Alloway said in a statement.

Allied has already written down the value of the Hanover Finance and United Finance loan books by more than three-quarters to less than $100 million, and the company widened its first-half loss to $20.6 million in the second half of last year.

Alloway said the firm, which is focusing on its rural services units after failing to transform itself into a major lender with the Hanover assets, wants bankrupt Kawarau Falls property developer Nigel McKenna, who is negotiating with his financiers, to settle his debts.

Separately, Allied appointed Chris Beh as its merchandising general manager of the rural unit.

The shares dropped a tenth of a cent to 1.2 cents, valuing the company at $24.5 million.

(BusinessDesk)

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