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Allied Farmers receives funds, seeks to reassure trustee

Fuseworks Media
Fuseworks Media

Wellington, Sept 6 NZPA - Allied Farmers Ltd said Trustees Executors, the trustee of its capital notes, has written to the Companies Office about its financial state.

Allied Farmers, which purchased the assets of Hanover Group last year, has delayed the reporting of its annual accounts after the receivership of its finance company Allied Nationwide Finance Ltd, and its chairman and managing director have resigned.

Allied Farmers said that if a trustee feels there is financial distress they have the right to give notice to the Companies Office of that opinion.

Trustees Executors did this on Friday without consulting the company.

Allied Farmers told NZX today that on Friday US time, (Saturday morning NZ time) it had been awarded a further interim distribution of about $NZ3.5 million relating to a luxury development in Beverley Hills, California, known as the Maison Reeves Condominiums.

This development was financed in part by Hanover and has been in receivership. This is the second distribution. More than $NZ6m was received in June.

"Our view is that Trustees Executors were not perhaps fully informed at the time they wrote that letter on Friday," said Rob Alloway, who was continuing as managing director until December.

Trustees Executors said it had nothing further to add to Allied Farmers' NZX release.

Allied Farmers said it was seeking to brief relevant stakeholders, including Trustees Executors and the Companies Office on the state of various initiatives, including the impending receipt of the Maison Reeves funds and other positive news expected shortly.

Allied Farmers was confident these initiatives, and a briefing would help clarify its financial position.

"We are making solid progress in addressing our financial position and we will give a further update, including some likely further positive developments when we release our preliminary accounts later this week," Mr Alloway said.

The Californian receiver was likely to be able to apply to the court within the next few months for a motion to make a final distribution of about $NZ7 million to Allied Farmers.

Allied Farmers has until 5pm on September 10 to file its annual accounts.

Allied Nationwide Finance Ltd, a wholly owned subsidiary of Allied Farmers, was placed in to receivership on August 20, resulting in a number of accounting and valuation matters in the annual accounts.

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