Allied Farmers says no deal yet with Property Ventures directors

Allied Farmers chairman Garry Bluett says a deal has not yet been done.

Allied Farmers says a deal hasn't yet been reached with the directors of property developer Dave Henderson's Property Ventures Ltd (PVL), contrary to reports yesterday.

The Hawera-based rural services firm is a beneficiary of the litigation against PVL after selling various loans to a unit of the action's funder in 2013. While a deal has been reached with the developer's auditor PwC, the liquidator was still pursuing PVL's former directors Austin Forbes, Alister Johnston, Gordon Hansen, Adolf de Roos, Daniel Godden and their insurer Vero Liability Insurance.

Stuff yesterday reported liquidator Robert Walker settled the claim with the directors ahead of a High Court hearing in February, however Allied Farmers today said the report jumped the gun.

"The liquidators have advised Allied that the media article is premature and that the liquidators are not aware of a final settlement having been formally reached," chair Garry Bluett said in a statement to NZX.

Bluett said he didn't know the amount of the PwC settlement or have any further insight into the suit against the directors, and "therefore is not able to provide any further guidance on the proportion of the net proceeds, if any, payable to Allied."

The company took on the loans in its ill-fated 2009 acquisition of the Hanover and United finance group's loan book that wasn't worth as much as initially thought. It sold them for $100,000, and at the time said that could rise to $500,000, but has since said if the litigation is successful it could be in for a larger return.

Allied shares last traded at 11.5 cents and have gained about 64 percent over the past 12 months.

(BusinessDesk)


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Eventually something for Hanovers long suffering investors, maybe?

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The dividend being paid to all Allied Farmers Shareholders on 19 January (3 days from now) signifies a welcome milestone and a fantastic achievement. All the nay-sayers from last year out there stating shareholders would have to wait a lifetime for dividend.... pffft.

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I know, isn't it fantastic. I'm in line to get $60 after tax. I wonder what that percentage would be on the $84k combined total, that I had invested in Hanover and United.

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What about the other $450 million that disappeared.?????

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It didn't disappear. Basically Allied had a fire sale of Hanovers assets, and then paid off all their bank debt with it.
The saddest thing about all this, is if Hanovers investors hadn't voted for the deal to go ahead, none of this would have happened, and they would have got a large percentage of their money back, under the current repayment scheme at the time.
I guess there's no end to people's stupidity.

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Hanover's assets were property , time looks after property , they just needed to hang on for 3-4 years they would have got all their money back and interest. the biggest issue with Hanover was the way the profit was booked and the directors paid themselves dividends on the capitalised profit from new money coming in , before it was actually earned.

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Allied didn't care about all that. They just saw a way off paying off their bank debt, and took it. The crime was that they were allowed to do it. So much for the so called govt watchdogs. (Edited)

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