Allied Farmers has received some breathing space from its banker, Westpac, which will extend the company's banking facility until late September.
The troubled finance and rural services firm's loan and overdraft facilities with Westpac expired on Thursday.
The company says talks between it, Westpac and another lender are continuing; with Westpac it's also considering a number of debt retirement and restructuring initiatives.
Allied Farmers' share price slipped 0.1c to 3.9c on Thursday after it announced its refusal to pay $5 million it owes to Hanover Finance, and said that it's considering legal action against some of Hanover's directors and executives.
Hanover accused of breaching agreement
Allied Farmers, which bought Hanover's assets from owners Eric Watson and Mark Hotchin for $396 million in December, is accusing Hanover of breaching their agreement by making transactions before the sale was completed.
Chief executive Rob Alloway says the breaches are worth more than the $5 million it was meant to pay on Wednesday, but won't say by how much.
Altogether, shares in Allied Farmers have lost more than three-quarters of their value since December.
