8 Oct 2011

Allied Farmers settles with Hanover over disputed payment

7:30 am on 8 October 2011

Troubled rural supplies provider Allied Farmers has reached a settlement with Hanover Finance on a bitter dispute over a $5 million payment.

Allied bought Hanover's assets for nearly half a billion dollars in 2009, and the rural services firms claimed Hanover did not reveal the true state of many performing loans, resulting in large writedowns.

It culminated in Allied refusing to pay Hanover $5 million as part of the deal.

Hanover will forego the $5 million, while Allied has withdrawn claims that Hanover acted uncommercially, saying its statements were without merit and unproven and it will also contribute to court costs.