Stock exchange bottom dweller Allied Farmers is appointing third party contractors to run its remaining Hanover assets and to prepare upcoming financial statements, following a management exodus.
Stock exchange bottom dweller Allied Farmers is appointing third party contractors to run the remaining assets and loans it took over from Hanover and to prepare upcoming financial accounts, following a management exodus.
Restructuring specialist Graham McKenzie, a former partner at law firm Bell Gully, is likely to be part of the arrangement, brought on by the pending departure of chief executive Rob Alloway.
Meanwhile, Allied’s chief financial officer, Gary Wong, finished with the group on Friday.
He had been working on contract since February 2010 and oversaw Allied’s refinancing and debt reduction programme. Allied is in the process of preparing year-end financial statements to the end of June – a set of accounts that will include a valuation update of the ex Hanover assets.
The company said a “contract resource has been engaged to prepare group accounts and assist with the preparation of the year-end accounts.”
Allied said it has split its management functions into two divisions, rural and investments, with the later housing the former Hanover and United Finance assets.
The company hoped to appoint a new chief executive for the rural unit shortly but said a full time chief executive was no longer needed to run the investment unit.
“The progress made by the executive team over the last 18 months in dealing with these assets is such that the board believes a full time chief executive is no longer required for this division,” Allied said in a statement.
Allied took over the Hanover and United assets following a debt for equity swap in December 2009. At that time it valued the assets at $396 million but has since written down the value to less than $100 million and has sold chunks of property to reduce its own existing debt levels.
Chairman Garry Bluett said it was likely Mr McKenzie would assist on an “as required basis.”
Mr McKenzie’s most recent role was on the board of Helicopters New Zealand, which was recently sold by the receivers of South Canterbury Finance to a Canadian firm.
Mr Alloway resigned as Allied Farmers managing director last month while speaking out against a fellow director in a dispute over investment banking fees relating to the Hanover deal.
He remains on contract until the end of June.
Allied's shares last traded at 1c. When Hanover investors swapped their debentures back in December 2009, the share price was just over 20c.
