Wellington, Aug 12 NZPA - Another big chunk has been taken out of the value of the assets that Allied Farmers acquired from Hanover Finance and United Finance in December.

Allied Farmers today said the unaudited fair value assessment of the net assets had been determined at $94.3 million, compared to $175.5m disclosed in the interim financial statements for the period ended December 31.

In late May, Allied Farmers said the net value of the property and loan assets acquired from Hanover and United was $124 million, but it warned then that remaining work required to complete the assessment would result in further impairments.

Today it said total unaudited additional impairments and fair value adjustments in property assets since December 31 was now $24.5m, while for loan assets it was $57.8m.

Those amounts were subject to any adjustments that may arise from the June year-end audit.

In December, Allied Farmers acquired the finance assets of Hanover and United, in a deal said to be worth about $400m under which Hanover and United investors received Allied Farmers' shares.

Allied shares were down 0.4c or 10.5 percent in late morning trading to 3.4c.

On Monday Allied Farmers said it was halting a previously announced capital raising while it talked to the trustee of its finance unit Allied Nationwide Finance.

That followed an announcement last Friday from Allied Farmers that Allied Nationwide Finance had received notice from Guardian Trust that it was in breach of a financial ratios and had 14 days to remedy the situation.

The board and management of the company did not agree with the trustee's view but decided to suspend the finance company's prospectus.

Today Allied Nationwide Finance said its long term counterparty credit rating from Standard & Poor's had been lowered to CC, with the rating remaining on credit watch negative.

The lowering of the rating was in response to the suspension of the company's prospectus.