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Allied Farmers and ANF securities on trading halt

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Aug 20 NZPA - A trading halt has been placed on Allied Farmers Ltd's shares and on listed securities of its troubled finance unit Allied Nationwide Finance (ANF) pending an announcement.

The trading halt notice said that the announcement in relation to the position of ANF may not be made until after the close of trading today.

Allied Farmers said earlier today that ANF missed a payment of debenture maturities due yesterday.

ANF said it expected to complete an initial transaction today that would result in the payment of debenture maturities now due.

Allied Farmers has suspended a planned capital raising and ANF has suspended its prospectus while it sorts out a disputed breach of its trust deed with trustee Guardian Trust, which gave ANF 14 days, until 5pm today, to remedy the position.

The board and management of ANF did not agree with Guardian Trust's view and believed that ANF was in compliance with the relevant ratio. Despite that, Allied Farmers said it was working to address the matters raised by the trustee.

ANF said that up to yesterday, it had continued to meet all its financial obligations, including repayment of maturing debentures.

But as the capital and funding initiatives under consideration by the Allied group needed third party commitments and Guardian Trust approvals, which had not been received by last night, it did not pay the debenture maturities due yesterday, ANF said.

ANF said it expected to receive a response from Guardian Trust later today and a further announcement would be made then.

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