25 Aug 2010

Allied Farmers to renegotiate debt agreement

10:43 pm on 25 August 2010

Allied Farmers has been forced back to the negotiating table with its lender to restructure its debt facilties.

Westpac agreed to extend its $17 million banking facility with Allied Farmers in July this year on the basis that certain milestones were met.

But Allied Farmers says because its subsidiary Allied Nationwide Finance has been put in receivership, the milestones for that agreement must be renegotiated.

The company is in discussions with Westpac and the lead manager of its planned rights issue McDouall Stuart.

Shares in Allied Farmers fell a tenth of a cent to 2.7c by the close of trade on Wednesday.