Allied Farmers to net $441,137 for receivable as PVL liquidator drops suit against directors
By Jonathan Underhill
March 23 (BusinessDesk) - Allied Farmers says it will get $441,137 as its share of the net proceeds of a lawsuit taken by the liquidator of Dave Henderson’s Property Ventures Ltd.
The Hawera-based rural services firm was a beneficiary of the litigation against PVL after selling various loans to the litigation funders in 2013. The company took on the loans in its ill-fated 2009 acquisition of the Hanover and United finance group's loan book that wasn't worth as much as initially thought. It sold them for $100,000, and had said it could rise to $500,000 or more. The additional payment was contingent on a successful lawsuit.
PVL liquidator Robert Walker, who was funded by litigation funder LPF Group, reached a confidential settlement with the auditors, PricewaterhouseCoopers, last August and dropped former managing director Henderson from its suit in November. Today, Allied Farmers said it had been advised that litigation against the other directors of PVL has been discontinued.
"The litigation undertaken by the liquidator of the company has been expensive and lengthy but has now been finally concluded," Allied chairman Garry Bluett said in a statement. "The proportion of net proceeds of the litigation payable to Allied is $441,137, subject to certification in accordance with the deed of assignment." That would bring the total to $541,137 including the initial sale price of the debt.
Allied expects to be paid in the next five business days. Its shares last traded at 10.5 cents and have gained about 69 percent over the past 12 months.