6 Sep 2010

Trustee writing to Companies Office about Allied Farmers

12:35 pm on 6 September 2010

There's more bad news for shareholders in Allied Farmers, after the rural services company warned that its trustee is writing to the Companies Office about its financial state.

It has been a tough few months for the company, with the collapse of its finance arm, Allied Nationwide Finance, ongoing writedowns of its Hanover Finance's assets and cuts to its credit rating.

It has until the middle of this month to release its annual results to the market.

Allied Farmers managing director Rob Alloway says the company expects to comply with its banking covenants.

But Mr Alloway says the company's trustee, Trustees Executors, has written to the Companies Office about Allied Farmers' financial state.

He says the company will brief the Trustees and the Companies Office on the work it doing to address its financial position.

Payment from asset

Meanwhile, Allied Farmers has received a $3.5 million payment following the settlement of a dispute over a former Hanover asset in Beverley Hills.

It comes on top of $6 million already paid and Allied Farmers says it expects another $7 million over the next few months.