10 Feb 2011

Hanover renews stoush with Allied Farmers

9:57 pm on 10 February 2011

Hanover Finance has reignited its stoush with Allied Farmers, saying the troubled firm is to blame for its dismal performance - not owners Mark Hotchin and Eric Watson.

Allied Farmers bought Hanover's loan book for $400 million in December 2009 but its share price has plunged following asset writedowns, the receivership of its own finance arm and cash problems.

Both sides are in court later in February as Hanover tries to recover $5 million that Allied is refusing to pay as part of the asset sale.

Hanover has written to its former investors, saying Allied's mismanagement has cost shareholders dearly and demanding that managing director Rob Alloway be sacked.