Alloway resigns from Allied Farmers
Embattled Allied Farmers managing director Rob Alloway has resigned from the board with immediate effect.
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Embattled Allied Farmers managing director Rob Alloway has resigned from the board with immediate effect.
“The Board of Allied Farmers acknowledges the extensive contribution Mr Alloway has made as a director during a challenging time for the company,” the company said in a statement.
Mr Alloway joined Allied Farmers in July 2009. The company gave no reason for the resignation.
He was instrumental in Allied’s strategy of taking over the distressed assets and loans of the former Hanover Group of Finance companies in a controversial debt for equity swap in late 2009.
The transaction has been a disaster for former Hanover debenture holders and existing Allied shareholders with the value of the assets now worth less than a third of the value ascribed to them at the time of the deal.
Allied’s share price is currently 1c.
Mr Alloway will stay on as chief executive until his contract expires in June.
His resignation from the board follows that of former chairman John Loughlin who quit last year.
Hanover and United Finance froze their assets in 2008, affecting more than 13,000 investors owed a total of $554 million.
Investors agreed to a moratorium but were later told payments would not be honoured. They then agreed to the Allied Farmers deal.
Not long after purchasing the assets, Allied Farmers complained to the Securities Commission and Serious Fraud Office (SFO). Both agencies are investigating.
Allied Nationwide Finance - Allied Farmers' finance company - has since collapsed triggering a $130 million payout under the Crown Retail Deposit Guarantee Scheme.
Allied Farmers has a share reset mechanism in place, which would see original Allied Farmers shareholders get issued more shares to compensate for any shortfall in the value of the assets at June this year.
Mr Alloway was Allied’s largest shareholder until the share register became bloated with former Hanover debenture holders.
Earlier this year Hanover co-owner Mark Hotchin lashed out at Allied’s management of the assets and called for Mr Alloway to be sacked.
Duncan Bridgeman
Thu, 28 Apr 2011
Thu, 28 Apr 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Alloway resigns from Allied Farmers
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