Hanover calls in lawyers on Allied

Hanover has also disclosed it is now assisting the authorities looking into the finance company's failure.

Hanover convinced its investors to swap their debenture stock for shares in Allied.

It accused Allied of "raising loan transactions with outside parties" and is "pursuing legal action against Allied and its subsidiaries to enforce their defaults."

Independent director David Henry, the only other director along with Mark Hotchin, said Hanover is cooperating with "various regulatory authorities and their information requests."