Allied Farmers receives funds

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

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, and its chairman and managing director have resigned.

"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," Rob Alloway, who is continuing in his role as managing director until December, said today.

The company told NZX today that on Saturday morning 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.

The company said it is 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 is confident that these initiatives, and an appropriate briefing will assist in clarifying the state of Allied Farmers' financial position.

The Californian receiver is 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.

While Allied Farmers expects to report that it remains in compliance with its covenants in respect of the capital notes, Trustees Executors has an ongoing obligation to consider and report on the financial position of Allied Farmers generally, and has made Allied Farmers aware that it has written to the Companies Office in relation to the financial state of Allied Farmers.

Given the work being undertaken on its accounts and also given that a number of proposed actions are incomplete and subject to commercial sensitivities, and therefore are not capable of general disclosure, the position is that not all stakeholders can be fully up to date with developments at all times, and Trustees Executors' action therefore necessarily occurred without it being aware of the latest information or developments.

- NZPA