Hanover takes aim at Allied
In a letter to investors, Hanover chairman David Henry and Hanover's half owner Mark Hotchin say they have been "alarmed at the decline and continuing erosion in the value of the assets that were transferred to Allied Farmers."
They say investors are contacting them in increasing numbers who share their view wanting to know what action Hanover's board is prepared to take. They say Allied is ignoring the plan promoted to investors in late 2009.
"It would appear that the financial difficulties facing Allied at the time were a lot worse than presented," the letter says, complaining that assets and cash which were to have improved Allied Nationwide Finance, Allied's subsidiary which went into receivership in August last year, never materialised.
"As a consequence of its financial difficulties, Allied appears to have sold assets well below fair value, creating losses and further diminishing the value of the remaining assets," the letter says.
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