10 Sep 2010

Sales will reduce debt, says Allied Farmers

1:05 pm on 10 September 2010

Allied Farmers says the early settlement of the sale of its Five Mile development in Queenstown will dramatically reduce its debt to Westpac.

The firm announced the sale would cut its senior term debt from $14.2 million to $5.4 million, while payments from a recent US court settlement regarding a Beverley Hills development will further reduce its debt to less than $2 million.

Allied's trustee, Trustee Executors, last week wrote to the Companies Office, citing concerns that it may be in financial stress.