Allied Farmers may write down $23m loan; wants McKenna bankrupted
It is also opposing property developer Nigel McKenna's bid to avoid bankruptcy over the failed Kawaru Falls Station development in Queenstown. McKenna owes Allied at least $110 million but Allied has already completely written the loan off.
Allied told NZX on Friday lawyers for Hong Kong-based lender Asian Syndicate Finance has informed it Andrew Tauber and Paul Webb's company Honk 2 will default on a secured loan relating to the 59 hectare Silverdale property.
Allied holds a second mortgage over the property securing the $23 million loan Hanover Finance made to Honk 2 in March 2009 and says a preliminary updated valuation indicates a write-down may be necessary.
"It is not possible for us to fully understand the final impact on the carrying value of the loan until the completion of both the new valuation, and /or the sales process is completed," says Allied managing director Rob Alloway.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)