Allied Nationwide receivers unable to say if Govt will be repaid
UPDATED: Receivers for collapsed finance company say $17 million of $128 million owing to Crown has been repaid to date.
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Receivers for collapsed finance company Allied Nationwide have repaid the Crown $17 million but are unable to give assurances the remaining $111 million debt will be satisfied.
The government has paid out $128 million to the companies secured debenture holders under the Crown Retail Guarantee Deposit Scheme.
Kerryn Downey and Andrew Grenfell of McGrathNicol were appointed on August 20 after Allied Nationwide (ANF) defaulted on interest for the $128m of retail investments.
The nonperforming portion of the ANF loan book has been sold, and the receivers' report said specific performing loans and loans attached to Spiers Securities were expected to be sold in June 2011.
The receivership has cost $1.7 million to date.
One problem for the receivers is that ANF's parent company Allied Farmers is likely to default on a loan to the finance company.
Last October Allied converted inter party debts with ANF into a loan secured over assets acquired from the former Hanover and United Finance assets.
The first loan of $8.9 million was due for repayment on or before July 1 this year while the second, now totaling $11.7 million, was due before July 2012.
Last week Allied Farmers said it would be "difficult" to conclude sufficient property realisations in order to fully repay the balance of the first loan by the due date.
Allied is also allegedly in default on funding arrangements previously disclosed including a disputed guarantee for $7 million to the purchaser of an ex Hanover loan and a also in relation to the receivership of Matarangi.
McGrathNicol is not commenting on the issue.
Matt Nippert
Mon, 18 Apr 2011
Mon, 18 Apr 2011
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Allied Nationwide receivers unable to say if Govt will be repaid
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