Published 27 July 2011
Allied Farmers Ltd said yesterday its “bad bank” subsidiary, Allied Farmers Investments Ltd, had received $2.45 million to settle a loan made by Hanover Finance Ltd to Bridgecorp Ltd (in receivership).
Allied Farmers acquired the Hanover loan book in December 2009. The company said these proceeds had been withheld due to Inland Revenue claims against Bridgecorp, but a judgment was issued in Bridgecorp’s favour in May and Inland Revenue withdrew its claim, allowing the distribution. Allied Farmers had provisioned the loan at nil. It will use the proceeds to reduce its debt to its secured lender, Allied Nationwide Finance Ltd (also in receivership).
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.