Hanover changes tack in claim against Allied
Dispute over $5 million payment now subject of civil action.
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Hanover's plan to go to court next week to claim a statutory demand for $5 million from Allied Farmers has been cancelled but is to be pursued as another form of a civil action.
Hanover spin doctor Carrick Graham could not give an explanation for the cancelled court hearing when asked by NBR.
The case involved $5 million Hanover claims it is owed as part of the merger with Allied in December 2009.
Allied refused to pay the amount when it became due, claiming misrepresentation of the value of loan assets it inherited in the merger following Hanover entering moratorium.
$398.2 million of Hanover loans have since been written down by Allied to $110 million.
The planned civil action is timetabled for hearings later this year.
Allied said in its NZX announcement, “Allied Farmers and Allied Farmers Investments intend to continue to defend the claims vigorously.”
Mr Graham suggested NBR call Chapman Tripp's Richard Wallace, Hanover's lawyer, for details of the civil action and the reason for the cancelled hearing.
Mr Wallace has yet to return NBR calls.
Hanover Finance, owned by Eric Watson and Mark Hotchin, is the subject of a Serious Fraud Office investigation after the two co-owners withdrew $86.5 million in dividends from the company in the two years prior to entering moratorium.
The Securities Commission has obtained a disputed freezing order against assets of Mr Hotchin.
Matt Nippert
Mon, 23 May 2011
Mon, 23 May 2011
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Hanover changes tack in claim against Allied
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