The dispute between Hanover Finance and Allied Farmers has escalated, with Hanover Finance saying it is taking legal action against the company after their ill-fated deal last year.In a brief (three paragraph) statement issued today by Chapman Tripp lawye
The dispute between Hanover Finance and Allied Farmers has escalated, with Hanover Finance saying it is taking legal action against the company after their ill-fated deal last year.
In a brief (three paragraph) statement issued today by Chapman Tripp lawyer Roger Wallis on behalf of Hanover Finance independent director David Henry, the company confirmed it is suing Allied Farmers.
“Hanover is also aware that Allied Farmers and its current managing director have sought to raise issues about certain commercial loan transactions with third parties, in an attempt to evade various contractual obligations to Hanover,” the statement said.
“Hanover is pursuing legal action against Allied and its subsidiaries to enforce their defaults, which is the appropriate way to resolve these matters.”
Earlier this year Allied Farmers said it had cancelled a contractual $5 million payment to Hanover Group due to what it claimed to be “serious breaches” of Hanover’s obligations under the agreement.
Today’s statement from Hanover also said, “Following recent media speculation, Hanover Finance confirms it is co-operating with various regulatory authorities and their information requests.”
The Securities Commission recently said it had nearly completed its investigation into the Mark Hotchin and Eric Watson-owned companies and their former directors and was close to deciding whether to lay charges.
