Receivers for Allied Nationwide Finance have told holders of the company's perpetual bonds they will not receive repayment under the government's retail deposit guarantee scheme.The company has $13.5 million of listed perpetual bonds and $2 million worth
Receivers for Allied Nationwide Finance have told holders of the company’s perpetual bonds they will not receive repayment under the government's retail deposit guarantee scheme.
The company has $13.5 million of listed perpetual bonds and $2 million worth of unlisted perpetual bonds on issue.
In their first report since Allied Nationwide was placed in receivership on August 20, Andrew Grenfell and Kerryn Downey of McGrathNicol sought to clear up any confusion on the status of the bondholders.
They confirmed the perpetual bonds were subordinated unsecured debt and therefore excluded from coverage by the Crown deed of Guarantee.
Conversely, Allied Nationwide’s secured debenture holders, owed $128 million, will be reimbursed under the scheme. The Treasury has Allied Nationwide's debenture register necessary to begin the payment process.
The receivers said they were developing a realisation strategy for the company’s assets but did not give a recovery estimate.
“At this stage of the receivership we are unable to determine if there will be any surplus funds available from the realisation of assets to meet the claims of unsecured creditors.
Preferential creditors, including employees and the Inland Revenue, are owed $1.77 million. Employee claims of $388,986 have already been paid.
Related party receivables owed by parent company Allied Farmers total $11.99 million.
Allied Farmers provided some much-needed good news to shareholders this morning, saying this morning that it had repaid its term loan facility with Westpac in full.
It also said it had reached an agreement with Allied Nationwide around its existing debtor factoring, credit enhancement and related party loan arrangements.
Under the new agreement Allied Farmers will convert the existing arrangements into secured loan facilities with Allied Nationwide Finance.
Allied Farmers shares climbed 0.7c to 2.2c on the news, a gain of 46.7%.
