Allied Farmers is understood to be going ahead with its stalled $19.3 million capital raising plan, which would end its need to find a new lender.
Shares in the embattled rural services firm hit a record low of 1.4 cents earlier in the week, but recovered slightly on Thursday after the company repaid its bank, Westpac.
The company also reached an agreement with the receivers of its collapsed finance arm, Allied Nationwide Finance, allowing it to take up to two years to repay millions of dollars of loans.
The capital raising has been on hold since August, as Allied Finance dealt with the receivership of its finance arm, Allied Nationwide Finance, and repaid its banker Westpac.
Now these issues have been resolved, Radio New Zealand understands the capital raising is back on the table with an announcement expected in the next week.
Allied Farmers chief executive Rob Alloway is at present in Fiji, reviewing the company's two properties there.
He says the repayment of the loan, and the agreement with receiver McGrath Nichol, now means it can turn its attention to getting the business back on track, and restoring investor confidence.
The company has been talking with an unnamed overseas-based lender to establish a new funding facility, but it may not be needed if Allied Farmers' planned capital raising is successful .
Meanwhile, Fairfax Media has reported Allied Nationwide Finance bondholders won't be repaid under the Government's retail deposit guarantee scheme, though the 4500 debenture holders will get the $128 million they're owed.
Shares in Allied Farmers rose 0.6 cents to close at 2.1 cents on Thursday.
