4 Apr 2011

Allied stock now worth less than 1c

11:13 am on 4 April 2011

Shares in Allied Farmers fell to a record low on Monday and are now worth less than 1 cent.

Allied Farmers says it's been told that property developer Tony Gapes has decided to appeal a High Court judgement which ordered Fenton Projects Ltd to pay $764,000 to Allied Farmers Investments, in relation to a defaulted loan.

Managing director Rob Alloway says he's disappointing the company will now have to spend more on legal fees and undergo more delays, but he's not prepared to stand by and let Mr Gapes default on his guarantee.

Allied Farmers' shares have lost almost 95% of their value since the rural services company took over the assets of Hanover and United Finance last December.

Its shares are trading at 0.9 cents.