10 Aug 2010

Allied Farmers shares make slight gain

10:21 pm on 10 August 2010

Shares in Allied Farmers recovered slightly by the close of trade on Tuesday, after a disputed trust deed breach by its finance arm forced the company to suspend plans to raise cash from investors.

After falling 1 cent on Monday, the finance and rural services firm's share price was up by 0.4c to 3.9c on Tuesday.

The company is seeking $19.3 million to bolster its financial position, but that is now on hold while it settles concerns raised by Allied Nationwide Finance's trustee.

Guardian Trust general manager of corporate trusts Bryan Connor says an independent report by McGrath Nicol that it commissioned uncovered a financial breach.

Mr Connor says, however, that the company has gone a long way towards resolving the issue.

Allied Nationwide has until Friday week to fix the trust deed breach.