29 Sep 2010

Hanover loan sold by Allied Farmers

12:28 pm on 29 September 2010

Allied Farmers has sold a former Hanover loan, from its Allied Farmers Investments subsidiary.

Shares in the embattled rural services company climbed almost 4%, to 2.7 cents, after it announced the sale will wipe its senior debt to Westpac.

The company has cut its debt to the bank from $17 million over recent months and has been talking with an unnamed, overseas-based lender to establish a new funding facility.

Managing director Rob Alloway won't say who the loan was to, how much it is worth, or who the buyer is.

But Mr Alloway says the company will provide an update about its funding arrangements late next week, when the sale is complete.