Allied Farmers has nearly three months of breathing space as it continues to negotiate new bank facilities and restructuring initiatives.On June 25 Allied Farmers said it was in talks with Westpac and one other lender ahead of the expiry of its term debt
Allied Farmers has nearly three months of breathing space as it continues to negotiate new bank facilities and restructuring initiatives.
On June 25 Allied Farmers said it was in talks with Westpac and one other lender ahead of the expiry of its term debt facilities on July 1. The other lender is proposing to offer funding under a shared security arrangement.
In addition, Allied Farmers and Westpac have been considering a number of debt retirement and restructuring initiatives that would have a positive impact, the company said.
As this process was taking longer than expected Westpac had agreed to extend the terms of the existing banking facility to September 24, subject to a range of terms and conditions, to allow sufficient time to conclude the initiatives being developed.
As of June 25 the amount outstanding under its Westpac loan facility was $16.5 million, down from $21.0 million on June 30 last year. The loan facility and an overdraft facility of $2.5m were due to expire today.
The facilities are secured by a general security agreement over the assets of a charging group which includes the parent company, Allied Farmers Limited, its wholly owned subsidiaries holding the assets of Allied Farmers' rural business, and the assets acquired from Hanover Finance and United Finance in December 2009. The charging group does not include the assets of Allied Nationwide Finance Ltd.
