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

 


Allied Farmers to repay Crown Asset Management $2M

Allied Farmers to repay Crown Asset Management $2M after asset sale, bond issue

By Paul McBeth

Aug. 4 (BusinessDesk) - Allied Farmers, which is rebuilding from a disastrous takeover of the Hanover and United Finance loan books, plans to repay $2 million to Crown Asset Management Ltd by selling down its stake in a subsidiary company and issuing bonds, satisfying its debt to the government entity.

The Hawera-based company will sell a tenth of its stake in NZ Farmers Livestock Ltd for $1 million, and issue $1 million of three-year non-listed bonds in its rural subsidiary by Oct. 3, to repay debt owed to the Crown entity set up to handle assets from failed finance companies backed by the government's deposit guarantee. Allied owed $2.65 million to Crown Asset Management as at Dec. 31, according to its first-half report.

NZFL shareholders Stockmans and Agent Company Ltd are buying the shares, exercising pre-emptive rights after Allied Farmers negotiated a sale with a potential buyer.

Holders of Allied Farmers bonds issued last year also agreed to extend their Aug. 29, 2014, maturity for another year.

Allied Farmers avoided liquidation last year, raising $600,000 in a bond issue, almost half of which was bought by interests associated with chairman Garry Bluett, and as series of asset sales helped reduce its debt with Crown Asset Management.

The share sale and extension of the existing bonds were granted waivers from an NZX listing rule which would require shareholder approval.

Allied Farmers is trying to rebuild after the disastrous acquisition of financial assets from Hanover and United Finance for $394 million in 2009. Its asset management unit, which houses the ex-Hanover and United Finance loans, held assets worth $183,000 and liabilities of $1.09 million as at Dec 31.

Shares of Allied Farmers were unchanged at 4.5 cents, valuing the company at $4.75 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news