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Allied Farmers discloses borrower default


Allied Farmers said it will need to write down the book value of loan on a property in Silverdale in the Rodney District after the borrower defaulted.

NZPA
Fri, 25 Mar 2011

Allied Farmers said it will need to write down the book value of loan on a property in Silverdale in the Rodney District after the borrower defaulted.

Allied Farmers Investments Ltd (AFIL) had been informed by lawyers for Hong Kong-based lender Asian Syndicate Finance that borrower Honk 2 Ltd, an investment vehicle of Andrew Tauber and Paul Webb, would default on a secured loan on the 59ha property.

AFIL holds a second mortgage over the property, relating to a $NZ23 million loan made to Honk 2 Ltd by Hanover Finance in March 2009. A valuation indicated that Allied may need to write down the book value of the loan but the carrying value of the loan was still being assessed.

AFIL has also been supporting Fletcher Construction in its bankruptcy action against property developer Nigel McKenna.

AFIL was unwilling to support the creditors' proposal put forward by Mr McKenna, which should result in bankruptcy being declared at the hearing on April 19.

The bankruptcy of Mr McKenna would have no impact on AFIL's carrying value of the loan, as it has been previously written down to zero.

NZPA
Fri, 25 Mar 2011
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Allied Farmers discloses borrower default
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