13 Sep 2010

Allied Farmers in talks with another banker

8:31 am on 13 September 2010

Allied Farmers is in talks to secure a new, overseas-based banker.

On Friday, the rural services firm reported a full-year loss of $77.5 million, with $60 million of that due to charges to cover its failed finance arm, and writedowns of its Hanover assets and loans.

Allied Farmers currently owes its bank, Westpac, $5 million, and that's expected to fall to below $2 million soon.

The troubled company held talks with an unnamed lender over the weekend, and hopes to reach an agreement with it in the next couple of days. Such a deal would result in the severance of its relationship with Westpac.

Allied Farmers had proposed raising $19.3 million, with $9 million of that being underwritten.