Hanover investors voting on Allied Farmers proposal

Hanover's shareholder meeting is under way at Auckland's Ellerslie convention centre where a large crowd has gathered to vote on whether to swap their stricken debt investments for shares in Allied Farmers.

While votes won't be counted until 2pm, a large number of proxy votes have already been tallied but the company would not disclose how they were cast.

The meeting was told 59% of the deposit holders, 63% of secured stock holders, 58% subordinated note holders and 65% of bond holders have already cast proxy votes.

To proceed, the proposal must gain 75% support from each of the four classes of Hanover investors.

During question time it became apparent that the mood among investors has shifted over the past couple of days.

Judging by some of the statements heard at the meeting many investors had come round to thinking it better to opt for the status quo and possible receivership than vote for this deal.

"Would I invest in Allied Farmers at this moment if I had the cash, thinking of their past history? No," said one investor.

"Is there any real hope of selling our shares at a reasonable price, quickly. No, there is a queue of sharks out their at the moment waiting to buy these shares at bargain rates.

“Will the receivers get me more? I don’t know but I’m prepared to take the risk. Enough of this higgledy piggeldy.

"What is possible that the receivers will find some way of getting their hands on a property worth $30 million in Paratai Drive."

Another investor praised Hanover co-owner Mark Hotchin "for at least having the guts to front up. Better than that chicken-livered Eric Watson."

Another described Mr Watson a "shyster"

The results of the vote are expected shortly.