Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Taxman comes calling on Allied Farmers for $3.7M

Taxman comes calling on Allied Farmers for $3.7M

By Paul McBeth

Feb. 25 (BusinessDesk) - Penny-dreadful stock Allied Farmers is teetering closer to the abyss after the Inland Revenue Department issued a statutory demand for $3.7 million in outstanding debt and adding another default event to the failed finance company.

The tax department is requiring payment from Allied Farmers Rural within 15 working days of Feb. 14, when the company advised IRD it was in talks with its secured lender Crown Asset Management. The demand is another enforceable event, and comes two weeks after an unnamed secured lender made a call on a $500,000 debt. Allied has until the end of the week to come up with a way to fend off its secured lender's call.

The Hawera-based company said it believes it can come up with a proposal for repayment on terms that will satisfy the tax department, and with support from CAM, "given that the continued trading of AFRL (Allied Farmers Rural) would ultimately result in a superior return for both."

In December 2011, Allied Farmers Rural sold its livestock business, with $280,000 of assets, for shares in a wholly owned subsidiary, New Zealand Farmers Livestock.

It then sold part of that company to a company owned by employees of Allied Farmers Rural, and issued more shares to Allied Farmers Rural's livestock agents, leaving it with 68 percent of the new company.

Those transactions were settled on a cash basis with a valuation of the livestock business at $7.5 million.

Allied's latest annual report shows it hasn't met the lending covenant to pay all taxes in 2011 and 2012.

Auditor PwC gave a 'Disclaimer of Opinion' on the company's 2012 annual report, saying there was insufficient evidence the group will generate enough cash from asset sales, reach agreement with some of its creditors, retain the support of its secured lender, and find new funding.

The IRD demand is the latest in a string of misfortunes for Allied since its disastrous 2009 debt-for-equity swap with Hanover and United Finance.

Shares in Allied sank 40 percent, or 0.8 of a cent, to 1.2 cents, valuing the company at just $1.8 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Bad Day For Rope: Donaghys Job Losses Another Blow To Dunedin

The loss of 30 jobs from Donaghys rope and twine factory is yet another blow to the people and economy of Dunedin, says Dunedin South Labour MP Clare Curran. More>>

ALSO:

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

WWF Report: Solutions In Reach; World Biodiversity Suffers Major Decline

Global wildlife populations have declined by more than half in just 40 years as measured in WWF's Living Planet Report 2014. Wildlife's continued decline highlights the need for sustainable solutions to heal the planet... More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news