12 Nov 2010

Bank demands repayment of $19 million loan

8:57 pm on 12 November 2010

HSBC is demanding repayment of a $19 million loan to a subsidiary of Allied Farmers.

Allied Farmers acquired Matarangi Beach Estates when it bought the assets of Hanover and United Finance late last year.

Allied Farmer's managing director, Rob Alloway, says while HSBC's action is disappointing, the development has always been one of the portfolio's difficult assets.

Mr Alloway says a recent campaign to sell the entire development wasn't successful, but it will try again to sell it.

He says the development was worth $7 million at the end of June, but a further fall in value is likely.