Allied Farmers writes down Hanover assets further
Allied Farmers continued to write down its former Hanover assets in the six months ended December which contributed to its overall $9 million loss.
Thursday, March 1st 2012, 6:48AM
by Jenny Ruth
That was down from its $20.6 million loss in the same six months of 2010. Most of the latest losses were from the restructuring of its rural division.
The investment division made a $4.2 million loss, down from $13.6 million in the previous first half, which included a further $3.6 million write down of the Hanover assets.
The company says this was because several of the properties over which it held second mortgages were sold by the first mortgagee.
The investment division "still has some loans that may prove difficult to collect. However, the larger part of the asset base is now the property assets including 81 sections at Jacks Point in Queenstown for which there is steady inquiry."
Hanover's former debenture holders used to own more than 90% of Allied but were heavily diluted late last year to less than 32% after the conversion of capital notes into shares and the top-up issue of shares to institutions who participated in a placement in 2010.
After the consolidation of every 100 shares into one late last year, Allied Farmer's market capitalisation is now $3.5 million. The Hanover assets were valued at $396 million when Allied acquired them at the end of 2009 in the debt-for-equity swap which saw the Hanover debenture holders become Allied shareholders.
| « Deluded investors too smart for advice | Managers warn against more KiwiSaver regulation » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
