Allied Farmers facing zero return from Matarangi receivers
By Paul McBeth
Aug. 10 (BusinessDesk) – Allied Farmers Ltd. will probably have to write down its stake in Matarangi Beach Estates Ltd.
to zero as the prior lender said it will take a loss on the loan.
HSBC, the first lender to Matarangi, faces a “significant loss” and it is “unlikely that any funds will be returned to
ALF (Allied) after the realisation of all of the assets,” the rural services company said in a statement. It received
the advice from receiver KordaMentha.
The bank cancelled its $18.9 million term loan facility in November last year after Allied refused to provide support
for the facility since December 2009. Allied was owed about $20 million by Matarangi at the time of its receivership.
In November, Allied turned down the chance to sell the assets back to Mark Hotchin and Eric Watson, the former Hanover
group owners, for the loan value.
Matarangi is undertaking property development in the Coromandel, owns the Dunes golf course, and some farm and
Receivers KordaMentha said they have sold two farms owned by subsidiary companies and one residential section, of which
the proceeds went towards HSBC’s loan, in its latest report, out last month.
Matarangi Beach had a gross value of $26.1 million as at May last year, resulting in a carrying value net of debt on
Allied’s books of $7.9 million. That’s down from the $45.8 million gross value attributed to the asset in Hanover’s June
30, 2009, financial statements.
The shares were unchanged at 0.8 cents apiece.