Allied Farmers to write Matarangi loan down to zero
The Matarangi loan was among those Allied Farmers acquired in Hanover's debt-for-equity swap in late 2009 which saw Hanover's debenture holders become Allied shareholders. The loan was valued at $45.8 million in Hanover's June 30, 2009 financial statements.
Allied says Matarangi's receivers have advised Matarangi's first secured creditor, HSBC, will incur a significant loss, leaving nothing for other creditors.
"Whilst the board of ALF has yet to complete its review of the carrying value of its assets for the purposes of the 2011 financial statements, it is likely that the board will write down the (Matarangi) carrying value to zero," the company told NZX.
HSBC was owed $19 million when it appointed KordaMentha as Matarangi's receivers in November last year. In May 2010, Allied valued Matarangi at
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